A mortgage loan is an example of an amortizing loan. "Amortizing" means that part of the monthly payment is used to pay interest on the loan and part is used to reduce the amount of the loan. A. 正确 B. 错误 如何将EXCEL生成题库手机刷题 如何制作自己的在线小题库 > 手机使用 分享...
Anamortization scheduleis a table or chart showing each payment on an amortizing loan, including how much of each payment is interest and the amount going towards the principal balance. Thankfully, there are many freely available websites and calculators that create amortization schedules automatically...
During the early years of an amortizing mortgage loan, the lender applies A. most of the monthly payment to the outstanding principal balance. B. all of the monthly payment to the outstanding principal balance. C. most of the monthly payment to interest on the loan. D. all of the monthly...
An amortization formula is based on the formula for calculating the value of an annuity. From this basic formula, you can determine the monthly payment on a fully amortizing loan. You can further modify it to get formulas that yield the remaining principal, the principal paid in a particular ...
A is correct. The notional principal of a swap is not exchanged in the case of an interest rate swap. B is incorrect because an amortizing loan will be matched with a swap with a pre-specified declining (not fixed) notional principal that matches the loan balance. C is incorrect because ...
Interest-only payments don’t last forever. You can repay the loan balance in several ways, depending on the terms of your loan: The loan eventually converts to an amortizing loan with higher monthly payments. You pay the principal and interest with each payment. ...
The loan eventually converts to an amortizing loan with higher monthly payments. You pay the principal and interest with each payment. You make a significant balloon payment at the end of the interest-only period. You pay off the loan by refinancing and getting a new loan. Note To find out...
Two accounting methods are used for amortizing bond premiums and discounts: straight-line and effective-interest. Amortization of debt affects two fundamental risks of bond investing. First, it greatly reduces thecredit riskof the loan or bond because the principal of the loan is repaid over time,...
Amortizing intangible assets is important because it can reduce a business's taxable income, and therefore its tax liability, while giving investors a better understanding of the company’s true earnings. Intangible assets also have a finite useful life; over time, trademarks or patents may lose ...
A is correct. An auto loan ABS involves the use of amortizing collateral, that is, the cash flows for an auto loan ABS include interest payments, scheduled principal repayments, and any prepayments, if allowed. B is incorrect because overcollateralization is one of the typical features of an...