Toll Brothers Inc. builds and finances luxury homes in the U.S.. Toll Bros. offers a 29 year mortgage where the borrower makes no payments during the first year. The promotion is offered on its entry level design, The Refuge, which sells for $1000000. What are the monthly payments after the first year? Toll Bros. offers an annual interest rate of 3.5%. Assume that this offer is in the U.S. where banks charge a periodic interest rate of i/m/Round your answer to the nearest dollar. Your Answer: Answer

Toll Brothers Inc. builds and finances luxury homes in the U.S.. Toll Bros. offers a 29 year mortgage where the borrower makes no payments during the first year. The promotion is offered on its entry level design, The Refuge, which sells for $1000000. What are the monthly payments after the first year? Toll Bros. offers an annual interest rate of 3.5%. Assume that this offer is in the U.S. where banks charge a periodic interest rate of i/m/Round your answer to the nearest dollar. Your Answer: Answer

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Frin Builders, a South African affordable houses company has signed a contract with the Kisumu County Government to build 50 affordable homes each year for a period of 5 years for resale. Each house that cost Shs. 1.65 million to construct will be sold at Shs.2.5 million each. Frin Builders cost of capital is 10%. Suppose the spot exchange rate is giver as ZAR I/Kes 13.5 and interest rates in Kenya is 10% while interest rates in South Africa is 1% throughout the period. What is the highest amount in South African Rands that Frin Builders should invest in Kenya? (Interest rate parity applies in forecasting annual
OneUSF, a U.S. MNC based in Florida, is considering making a fixed direct investment in Italy. The Italian government has offered OneUSF a concessionary loan of €2,700,000 at a rate of 3 percent per annum. The current spot rate is $1.36/€1.00 and the expected inflation rate is 4% in the U.S. and 2% in Italy. The normal borrowing rate is 7 percent in dollars and 6 percent in euros. The loan schedule calls for the principal to be repaid in three equal annual installments. The marginal corporate tax rate in Italy and the U.S. is 35%. What is the present value of the benefit of the concessionary loan? (Please keep 2 digits in decimals to get the right answer) $117,160 None of the above with the $10,000 of the correct answer $51,360 $1,165,209 $1,310,116
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Yankee Company Ltd is a US. based company that has plans to borrow EUR 10 million to fund increased working capital to boost sales of is product in Europe. The company expects Euro interest rates lo rise so it enters into a 3X9 Forward Rate Agreement (FRA) to lock in the interest rate it will pay on is Euro borrowing. The current borrowing rate on the contract date is 3.5%. The borrowing rate on the settlement date rises to 3.8% Required: a) Calculate the amount that Yankee Co needs to pay lo settle the FRA on the settlement date b) Yankee Co management subsequently decides to extend its Euro borrowings for a year as its increased working capital in Europe has increased sales and profits. Yankee's main bank which funds its European operations offers it a one-year loan of Euro 10 million at a floating rate of interest of one-year Euro Interbank Offered Rate (Euribor) plus 3.5%. Yankee Co prefers to pay a Bred rate of 3 25%. It enters into a swap agreement with a counter-party to…
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To travel to America via the ship Titanic, Juana made a P100,000 loan which is to be paid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P100,000 must be repaid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly. 1.) Calculate the sinking fund Balance immediately after the 6th payment is made.

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