Finance Assignment | Top Essay Writing
March 18th, 2020
Explain five property interests that can be mortgaged (5 marks) b) An ARM is made for Kshs 150,000 for 30 years with the following terms: Initial interest rate is 7%; Index is 1-year Treasuries;
Payments reset each year; Margin is 2%; Payment cap at 5% increase in any year. Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Year 2 is 7%; Year 3 is 8.5%; Year 4 is 9.5%; Year 5 is 11%. Payments are monthly. Required Compute the payments and loan balances for the five-year period. (15 marks) Get Finance homework help today