University | Singapore University of Social Science (SUSS) |
Subject | FIN203: Essentials of Financial Management |
FIN203: Essentials of Financial Management Assignment, SUSS, Singapore Peter has a housing loan with UOB Bank before the COVID19 pandemic broke out and The details of the loan
Question 1
Peter has a housing loan with UOB Bank before the COVID19 pandemic broke out. The details of the loan are as follows:
Principal: $1,000,000
Interest rate: 4% per annum
Tenure: 25 years
Repayment: Amortization with monthly repayment. The lives of many were affected with jobs lost and businesses declining by the pandemic. Peter
was adversely affected, too, and was unable to service his loan. Many banks, UOB included, showed compassion by allowing homeowners to defer full loan repayments by paying interest only for 18 months as a relief. When this was announced, Peter had just paid the 120th installment of his housing loan.
(a) Compute the monthly repayment before the pandemic broke out?
(b) Compute how much Peter has to pay each month during the relief period?
(c) Compute how much Peter is still owing the bank at the end of the relief period?
(d) Compute the monthly repayment when the loan repayment resumes if he still plans to discharge the loan fully at the end of the 25th year?
(e) Compute how many more months he needs to extend the loan from the original 25 years
if the monthly repayment in part (a) above is maintained when the repayment resumes? Show your workings and also justify your answer intuitively.
Question 2
A firm plans to issue bonds to finance its expansion.
(a) Discuss the agency conflict between the shareholders and the bondholders by relating to any two (2) of such conflicts.
(b) Identify two (2) ways to mitigate such conflicts.
Buy Custom Answer of This Assessment & Raise Your Grades
Seeking online assignment assistance? Enhance your FIN203: Essentials of Financial Management assignment with expert guidance. Access top-notch tutor-marked assignments at My Assignment Help SG. Elevate your academic journey at the Singapore Polytechnic School of Business (SP) with our tailored support. Score high and master financial management essentials effectively.
- Imagine that you are currently working for a precision medicine startup: Machine Learning Paper Review in Precision Medicine, Written Assignment 1, NUS, Singapore
- Go Business offers PSG solutions for enterprises in Singapore: Collective Intelligence and Entrepreneurship, Assignment 1, JCU, Singapore
- Design an ontology based on- Accidents can be categorised as chemical, electrical, fire, kinetic or liquid: Collective Intelligence and Entrepreneurship, Assignment 1, JCU, Singapore
- Project Control Monitoring, Assignment, HU, Singapore: Deliberate Project MONITORING AND CONTROL or PMC Identification
- DSM500: Final Project Report, Coursework 2, UOL, Singapore
- DSM080: Financial Markets, Assignment, UOL, Singapore: A grapefruit juice futures contract is for 15,000 pounds of frozen grapefruit juice
- DSM080: Financial Markets, Assignment, UOL, Singapore: The share price of a certain stock today is $42.50, and five-month European style call options with a strike price of $45 currently sell for $4.25.
- DSM080: Financial Markets, Assignment, UOL, Singapore: A trader who is working in the gold markets is able to borrow money at the interest rate of 7% per annum
- DSM080 Financial Markets, Assignment, UOL, Singapore: A dollar-based American corporation has decided that it will have to pay 6 million UK pounds in three months
- Principle of Finance Assignment, UCD, Singapore: National Gaming Inc. (National) operates the weekly lottery in the country
UP TO 15 % DISCOUNT