Question: I need help with this question please, show all the work The following information will be used for Question 2 and 3: You have a

 I need help with this question please, show all the workThe following information will be used for Question 2 and 3: Youhave a choice between two non-amortizing loans. The first non-amortizing loan (fixedrate loan) is $10,000 over 5 years with a fixed rate at4%. The second loan (variable rate loan) is also $10,000 over 4years with or a floating rate loan of LIBOR plus .7%. Table

I need help with this question please, show all the work

1. shows what you are projecting LIBOR to be over the next4 years. Table 1: Year 1 4.00% Year 2 4.50% Year 34.25% Year 4 3.75%Question 2: Based on your projection of interest expensewhich loan do you choose if you want to minimize this expense,the xed rate loan or the variable rate loan? Select your answerusing the drop down box versus typing in the answer. Variable Rate

The following information will be used for Question 2 and 3: You have a choice between two non-amortizing loans. The first non-amortizing loan (fixed rate loan) is $10,000 over 5 years with a fixed rate at 4%. The second loan (variable rate loan) is also $10,000 over 4 years with or a floating rate loan of LIBOR plus .7%. Table 1. shows what you are projecting LIBOR to be over the next 4 years. Table 1: Year 1 4.00% Year 2 4.50% Year 3 4.25% Year 4 3.75%Question 2: Based on your projection of interest expense which loan do you choose if you want to minimize this expense, the xed rate loan or the variable rate loan? Select your answer using the drop down box versus typing in the answer. Variable Rate L03\" Question 3 5 pts Question 3: What is the dollar amount difference in interest expense between the xed and variable rate loan (only show to the whole dollar, and input answer in $xx format)? Use the following information to answer Questions 4 and 5 Assume the US. Treasury issued $200 million of 6-month Treasury Bills using the "Dutch" auction system. As shown in table 1, The US. Treasury received 1 non-competitive bid and 4 competitive bids. Assume each bid represents a bid from one individual or one organization. Bidder 1: $40 Million at 1.40% Bidder 2. $60 Million at 1.35% Bidder 3: $50 Million at 1.45% Bidder 4: $80 million at 1.42% Bidder 5: $10 Million non-competitive bid. Question 4: What was the interest rate that the $200 million, 6-month Treasury Bills were issued at? Show your answer to 2 decimal places in the x.xx% format - La. 6.31%. Question 5: Fill in the amounts that each bidder received of the $200 million Treasury Bill issue. Use the $xx format. Bidder 1 million Bidder 2 million Bidder 3 million Bidder4 million Bidder 5 million Question 6: A bank reviews the losses on its real estate loans. The bank estimates that .5% of the outstanding principal on its loans are not paid back on a yearly basis. The total outstanding principal on its real estate loans are $20 million dollars. If the bank determines that the optimal or desired rate (r) for its real estate loan is 3.75%, what is the actual yearly interest rate that the bank should charge to compensate for its expected losses? Show your answer to 2 decimal places in the x.xx% format - i.e. 6.31%

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