Asked by John
Bob buys a house for 150,000 with a mortgage rate of 5.8% convertible monthly. At the time of
purchase he owns a 10,000 20-year zero coupon bond that earns 4.5% annually. The bond
matures in 15 yeas. He would like to use the proceeds from the bond to make a payment larger
than the usual fixed rate payment and pay off the balance of the mortgage after the 180th
payment. How much should his monthly payments be?
purchase he owns a 10,000 20-year zero coupon bond that earns 4.5% annually. The bond
matures in 15 yeas. He would like to use the proceeds from the bond to make a payment larger
than the usual fixed rate payment and pay off the balance of the mortgage after the 180th
payment. How much should his monthly payments be?
Answers
Answered by
shakeel
i need answer of the above question
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