Which of the following statements is not true about mortgages?O The ending balance of an amortized loan contract will be zero.O If the payment is less than the interest due, the ending balance of the loan will decrease.Mortgages are examples of amortized loans.O Every payment made toward an amortized loan consists of two parts-interest and repayment of principal.

Amortized loans are a type of loan which repays the loan by regular interval payments for a…

Answered: Which of the following statements is…

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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When a borrower is unable to repay its loan, it is common that the lender would negotiate with the borrower by rescheduling its payment on the loan to the future. How would the rescheduling of sovereign bonds affect the interest rate risk of the bonds?
Amortized loans with equal principal repayments will result in less interest being paid over the life of a loan than alternative types of amortized loans. True or False
All option are Company B, Company A
Economics (Dis the risk that a borrower will make additional principal payments on the loan and thus reduce the total amount of interest paid. Consider a traditional pass-through security and a collateralized mortgage obligation (CMO) with three tranches. Suppose 4% of the borrowers do not repay their loans. Which of the following statements are accurate? Check all that apply. a.All holders of pass-through will lose 4% of their money. b.Only the bottom tranche of CMO holders will lose 4% of their money. c.Only the top two tranches of CMO holders will lose their money. d. Only 4% of pass-through holders will lose their money
solve this practice problem
Explain Incremental Borrowing Cost versus a Second Mortgage?
2 pt Which of the following is a FALSE statement? O A mortgage does not give the lender a right to be paid from the cash proceeds of the sale of a borrowers' assets identified in the mortgage. O Mortgage notes pledge specific assets as security for the note. O A mortgage contract describes the mortgage terms. O Accounting for mortgage notes and bonds is similar to that for unsecured notes and bonds, except that th mortgage agreement must be disclosed.
32. This clause, typically found in a loan agreement, permits the holder to declare the entire amount of the loan due, in the event of a default by the borrower: -default clause -acceleration clause -HDC clause -none of the above
A "mortgage" is a loan contract and is actually made up of which two contracts: O Index & Margin O Note & Deed Fixed & Adjustable O Amortized & Interest-Only
A mortgage that allows the borrower to pay less than the interest due for a few year (A) negative-amortization mortgage.. B credit-default swap. C) traditional, thirty-year fixed-rate mortgage. D "liar loan".
#45 A type of short-term loan where the borrower sells its accounts receivables to the lender at a discount to face value is called: a bond. a compensating balance. a letter of credit. an assignment. factoring.
Which of the following security instruments, if any, does not allow the debtor the right of redemption upon default? a. Mortgage foreclosure by "action and sale" b. "Strict foreclosure" of mortgage c. Debtors have a right to redeem property under all of these security instruments. d. Deed of trust e. Mortgage foreclosure by "power of sale"

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