What is meant by prepayments due to rate/term refinancing?
What will be an ideal response?
Rate/term refinancing means that the borrower has obtained a new mortgage on the existing property to save either on interest cost or shortening the life of the mortgage with no increase in the monthly payment. The homeowner's incentive to refinance is based on the projected present value of the dollar interest savings from the lower mortgage rate after deducting the estimated transaction costs to refinance.
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Deltona Motors just issued 230,000 zero-coupon bonds. These bonds mature in 18 years, have a par value of $1,000, and have a yield to maturity of 5.9 percent. What is the approximate total amount of money the company raised from issuing these bonds? Assume semiannual compounding.
A. $88.20 million B. $80.76 million C. $75.14 million D. $62.08 million E. $91.84 million
Which of the following is not true of secondary data, or information?
A) They have been collected for a purpose. B) They are almost always a part of a marketing research project. C) They are widespread and readily available. D) They are difficult to find because you must first petition the researcher to get the data. E) You can conduct a search for secondary information on virtually any topic quickly and efficiently.