of. Consider the following three reasons to refinance. Better Interest Rates Have you had your mortgage for quite some time? Chances are that you are paying a very high interest rate compared to what current rates are. Over the past 10 years‚ 30 year fixed interest rate mortgages have been as high as 6.63%. In comparison‚ a current interest rate for the same type of mortgage is around 4.0%. You can also benefit from better interest rates if you received an
Premium Real estate Mortgage loan Mortgage
The current federal student-loan program has some problems that must be addressed. For example‚ the forgiveness of student-loan debt‚ artificially low-interest rates‚ and repayment plans. The U.S Department of Education is the primary source of federal student loans. Several types of loans are offered through the Direct Loans program. Subsidized and Unsubsidized Stafford Loans for undergraduate and graduate students. In order to address this situation‚ to help the students‚ the federal government
Premium Debt Loan Money
SCOPE OF THE STATEMENT Concepts Statement no. 7 includes general principles that govern accountants’ use of present value‚ especially when the amount of future cash flows‚ their timing‚ or both‚ are uncertain. This might happen when a business sells an asset and receives payments over time. The statement is limited to measurement issues (how much) and does not address recognition issues (when or if). It does not specify when fresh-start measurements are appropriate. Rather‚ FASB expects to decide
Premium Net present value Time value of money Asset
with bank also earn interest. Thus‚ deposits with the bank grow along with the interest earned. If the rate of interest is higher‚ public are motivated to deposit more funds with the bank. There is also safety of funds deposited with the bank. b) Grant of loans and advances The second important function of a commercial bank is to grant loans and advances. Such loans and advances are given to members of the public and to the business community at a higher rate of interest than allowed by banks
Premium Bank Credit Debt
instruments. Bonds can be priced at a premium‚ discount‚ or at par. If the bond’s price is higher than its par value‚ it will sell at a premium because its interest rate is higher than current prevailing rates. If the bond’s price is lower than its par value‚ the bond will sell at a discount because its interest rate is lower than current prevailing interest rates. When you calculate the price of a bond‚ you are calculating the maximum price you would want to pay for the bond‚ given the bond’s coupon rate
Premium Finance Inventory Time value of money
money market interest rate will increase for the next six months‚ the team has come out with a few strategies to be undertaken in order to maximise the bank’s profit. The first instrument will be of the cash products‚ including overnight cash‚ 7-day cash and loan‚ and secondly‚ the discount security which consists commercial bills. 1. Overnight & 7-day Cash The bank can offer to take overnight deposits or make overnight loans to big corporations‚ making use of the increasing interest rate for
Premium Money Bond Finance
August 2007 issue of debt at 6.25% interest rate and the interest expense journal entry for 2007 and 2008 related to this debt are as follows: August 1‚ 2007 Issue of Debt: Cash 549‚000‚000 Senior N/P Discount 1‚000‚000 Senior Notes Payable 550‚000‚000 December 31‚ 2007: Interest Expense 14‚357‚084 Interest Payable 14‚315‚417 (550‚000‚000 x .0313 x 5/6) Discount 41‚667 (50‚000 x 5/6) February 1‚ 2008: Interest Payable 14‚315‚417 Interest Expense 2‚872‚916 Cash 17
Premium Balance sheet Accounts receivable Financial ratios
Time: 50 minutes writing time (no reading time) Question 1 (2 Marks ) (i) Vincent invested a sum of $5‚000 in a bank account earning 5½% p.a simple interest on 1 September 2003. On what date will Vincent’s bank account reach an accumulated balance of $5‚039.18? 23 October 2003 (ii) A 90-day note is to mature for $2‚000 plus simple interest at 7% p.a. Calculate the maturity payment (correct to the nearest cent). $2‚034.52 Parts (iii) to (iv) are based on the following information: A 180-day
Premium Finance Investment Time
1. Assume the current U.S. dollar-British spot rate is 0.6993£/$. If the current nominal one-year interest rate in the U.S. is 5% and the comparable rate in Britain is 6%‚ what is the approximate forward exchange rate for 360 days? A) 1.42£/$ B) 1.43£/$ C) 0.6993£/$ D) 0.7060£/$ E) 0.6927£/$ Answer: D 2: You are given the following exchange rate quotes in Sydney: |USD/AUD |0.5366
Premium Investment Net present value Time value of money
past loan-repayment performance C*: the term structure of interest rates D: the assets available to be pledged as security Feedback: The margin added to the bank’s base rate will reflect the credit risk of the individual borrower. In assessing the risk and hence the margin‚ the bank is likely to consider factors such as the debt to equity ratio of the borrower and its past loan repayment performance. The term structure of interest rates is a market-wide factor and is likely to influence the
Premium Debt Interest Loan