The university has an enrollment of 90, students, mostly online. The students do not live on campus and are scattered around the globe.
Use Excel to do any financial calculations. You will be graded on correct financial analysis, proper use of technology, and business-like presentation. The meeting is to discuss the mortgage options available to the company to finance the new facility.
Christie begins the meeting by discussing a year mortgage. The loan would be repaid in equal monthly installments. Christie states that the APR of the loan would be 6. Todd asks if a shorter mortgage loan is available. Christie says that the bank does have a year mortgage available at the same APR.
A smart loan works as follows: Every two weeks a mortgage payment is made that is exactly one-half of the traditional monthly mortgage payment. Christie informs him that the bank does have smart loans.
Mark nods his head. He then states this is the best mortgage option available to the company since it saves interest payments. Christie agrees with Mark, but then suggests that a bullet loan, or balloon payment, would result in the greatest interest savings.
The monthly payments of a bullet loan would be calculated using a year traditional mortgage. In this case, there would be a 5-year bullet. This would mean that the company would make the mortgage payments for the traditional year mortgage for the first five years, but immediately after the company makes the 60th payment, the bullet payment would be due.
The bullet payment is the remaining principal of the loan.
Chris then asks how the bullet payment is calculated. Christie tells him that the remaining principal can be calculated using an amortization table, but it is also the present value of the remaining 25 years of mortgage payments for the year mortgage.
Todd has also heard of an interest-only loan and asks if this loan is available and what the terms would be. Christie says that the bank offers an interest-only loan with a term of 10 years and an APR of 3. She goes on to further explain the terms. The company would be responsible for making interest payments each month on the amount borrowed.
No principal payments are required. However, the company can make principal payments at any time. The principal payments would work just like those on a traditional mortgage.
Principal payments would reduce the principal of the loan and reduce the interest due on the next payment. They have asked Chris to answer the following questions to help them choose the correct mortgage.
What are the monthly payments for a year traditional mortgage?Post Company issues a 6 year, 6%, $, bond at par on July 4. What type of positive and negative covenants may AirJet Best Parts, Inc.
use in future bond issues? CLICK HERE TO ORDER A % ORIGINAL PAPER FROM ashio-midori.com Post navigation. ashio-midori.com type of positive and negative covenants may AirJet Best Parts, Inc.
use in future bond issues? (10 pts) For getting the instant digital solution download, Please click on the “PURCHASE” link below to get AirJet Best Parts, Inc Course Project – Part I Task 1 Assessing loan options _2 Competitor’s Stock and 3 Bond Evaluation_Answer.
So if the bond has a higher maturity then one must ensure that they receive the best coupon for the bond.
What type of positive and negative covenants may AirJet Best Parts, Inc. use in future bond issues? (10 pts) Positive Covenants: Maintain enough liquid assets to maintain the principal amount of the bond Should have certain amount of.
DRAFT RED HERRING PROSPECTUS Dated: September 29th, Read with Section 32 of the Companies Act, (The Draft Red Herring Prospectus will be Updated upon filing with the ROC.
AirJet Best Parts, Inc. would like to issue year bonds to obtain remaining funds for the new Mexico plant. The company currently has % semiannual coupon bonds in the market that sell for $1, and mature in 20 years. 4. What type of positive and negative covenants might Aero Plain use in future bond issues?
(10 pts) Assuming that AirJet Parts, Inc. is considering loans from National First and Regions Best, what are the EARs for these two banks?