Why would one lender charge more for a loan to different borrowers? Why would two different lenders

Question:

Why would one lender charge more for a loan to different borrowers? Why would two different lenders charge different rates to the same borrower?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Management Core Concepts

ISBN: 978-0132671033

2nd edition

Authors: Raymond M Brooks

See More Books

Question Posted: May 08, 2014 08:08 AM

See More Questions

John Flemming has been shopping for a loan to finance the purchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with the lowest interest rate. The...
Dan Bergstrom has approached your bank for a loan to start a hazardous waste management business. There are a number of biotechnology and chemical companies in Dans community, and such companies...
Essa Farook has been shopping for a loan to finance the purchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with the lowest interest rate. The...
Ms. Esperanto obtained a $40,000 home equity loan at 7.5% compounded monthly. a. What will she pay monthly if the amortization period is 15 years? b. How much of the payment made at the end of the...
Examine Laura's non-monthly expenses. a. Which month has the greatest expenses? b. How might Laura prepare for those expenses? Laura's Financial Report Income Teacher, monthly after-tax income:...
Does texting while driving create a negative externality? If so, should the government implement a no-texting tax that would lead to a socially desirable level of texting while driving or should it...
After rereading the Opening Profile, identify all effective actions Ellie Symes and Wyatt Wells initiated in the early days of building The Bee Corp.
In 2006, the Russ College of Engineering and Technology of Ohio University announced that an investigation had found rampant and flagrant plagiarism in the theses of mechanical engineering graduate...
Duncan's Diamond Bit Drilling Corporation (Duncan) purchased the following assets in 2023. Assume its taxable income was $60,000 for purposes of computing the 179 expense deduction. Asset Purchase...
Cisco Systems is a U.S.-based multinational corporation that designs, manufactures, and sells networking equipment. Founded in 1984, Cisco became a giant in the telecom industry, due in large part to...
Cereal City Instruments will issue commercial paper for a short-term cash inflow. The paper is for 182 days, has a face value of $50,000, and is anticipated to sell at 94% of par value. Cereal City...
What is the advantage of financial leverage, the degree to which a firm or individual utilizes borrowed money to make money?
What are some ways ranchers can better manage risk associated with drought?
Explain the new-product continuum and compare and contrast the different types of innovation.
Describe the available alternatives for conflict resolution and dispute settlement when doing business outside the home country.
Explain how Maslows needs hierarchy helps global marketers understand the benefits sought by buyers in different parts of the world.
Use the market expansion strategies matrix to explain the strategies used by the worlds biggest global companies.
Identify and explain the roles of some of the key participants involved in the exporting process.
What is the molarity of a 6.56% by mass glucose (C 6 H 12 O 6 ) solution? (The density of the solution is 1.03 g/mL.) SORT You are given the con- centration of a glucose solution in percent by mass...
What is the order p of a B + -tree? Describe the structure of both internal and leaf nodes of a B + -tree.
Hays Oil Company had the following transactions during the year: a. Acquired an undeveloped lease, $55,000 b. Paid a drilling contractor as follows: c. Paid costs in evaluating the well, $20,000 d....
The trial balance of the Parton Wholesale Company contained the following accounts at December 31, 2010 the end of the company's calendar year. Adjustment data: 1. Depreciation is $10,000 on...
Data concerning the most recent year appear below: Sales ...............$ 14,040,000 Net operating income ......... $ 1,193,400 Average operating assets ....... $ 5,200,000 The Chief Financial...
Use these financial statements to answer the question. Income Statement Net Sales ............$32,700 Costs ............... 20,705 Depreciation ............ 2,510 EBIT ............... 9,485 Interest...
Assume that a firm has weighted average cost of capital of 3.6% with a corporate tax rate of 21%. The pre-tax cost of debt is 3.1%. In case the firm would have no debt, the cost of equity for the...
Consider the stock of Aya Company, which will pay an annual dividend of $3 one year from today. The dividend will grow at a constant rate of 3%, forever.The market requires a 12% return on the...
Analyze the video presented on the link below. Also, please discuss or explain the video and relate it to personal finance. https://www.youtube.com/watch?v=nFY0HBkUm8o

Why would one lender charge more for a loan to different borrowers? Why would two different lenders

Question:

Step by Step Answer:

The difference in lending rates from the same lender to two different borrowers is base...View the full answer

Financial Management Core Concepts

Students also viewed these Finance questions