, 02.12.2019 23:10

# Gina wanted to tell her employees about the seminar, but she put the flyer in a stack of papers and forgot about it until after the deadline, so none of her employees were able to sign up for the seminar. what type of barrier has occurred in this situation?

A\$400,000 adjustable rate mortgage can be obtained with monthly payments over a 30-year with the following terms: initial interest rate = 5% index = 6-month treasuries payments adjusted every 6 months margin = 2% interest rate cap = none payment cap = none discount points = 2% based on estimated forward rates computed from the yield curve on u.s. treasury bills, the index to which the arm is tied is forecasted as follows: end of month (eom) 6 = 6%. 10 pts (a) compute the monthly payments for the arm for a one-year period. 10 pts (b) what is the mortgage balance at the end of year 1? 10 pts (c) what is the before-tax effective cost of borrowing on the arm if the loan is repaid after one-year? 10 pts (d) what is the after-tax effective cost for the arm if the loan is repaid after one-year? assume that the benefit of interest deductions for tax purposes occurs at the same time payments are made. also assume that the points are tax deductible at the time they are paid. assume the tax rate is 0.28. show all calculations.