Each question will be either given full credit or zero credit.

You can use Excel to get the CF and IRR for each period. But do Enter your answer in BLUE ink.

Please keep 2 digits for the IRR calculation.

1 Ann got a 10 year Fixed Rate Mortgage for $100,000.

The loan has constant annual payments and an annual interest rate of 5%.

There are no closing costs.

Suppose Ann prepays the loan in year 4.

Write the NPV of Anns Mortgage (from Anns perspective) for an annual discount rate "k" in each of the following cases.

Note: the answer must take the form NPVk=CF0+CF11+k1+CF21+k2+CF31+k3+CF41+k4

Note: only include one cash-flow for each time period

1a Fully Amortizing

1b Partially Amortizing where the final balance is B10=$50,000

1c Interest Only

1d Negatively Amortizing where the payment is PMT=$1,000

1e Negatively Amortizing where the payment is PMT=$0

2 Compute the IRR for each loan above

2a

2b

2c

2d

2e

3 Ann got a 10 year Fixed Rate Mortgage for $100,000.

The loan has constant annual payments and an annual interest rate of 5%.

The closing cost for the loan is $2,000 (paid at the time of origination, t=0).

Suppose Ann prepays the loan in year 4.

Write the NPV of Anns Mortgage (from Anns perspective) for an annual discount rate "k" in each of the following cases.

Note: the answer must take the form NPVk=CF0+CF11+k1+CF21+k2+CF31+k3+CF41+k4

Note: only include one cash-flow for each time period

3a Fully Amortizing

3b Partially Amortizing where the final balance is B10=$50,000

3c Interest Only

3d Negatively Amortizing where the payment is PMT=$1,000

3e Negatively Amortizing where the payment is PMT=$0

4 Compute the IRR for each loan above

4a

4b

4c

4d

4e

5 Do closing costs raise the IRR more for loans with greater amortization? (Yes or No).

Solve the above question with the help of excel and provide me the whole process. Thank you.