|
- UID
- 223408
- 帖子
- 227
- 主题
- 26
- 注册时间
- 2011-7-11
- 最后登录
- 2014-8-5
|
2#
发表于 2011-7-13 16:27
| 只看该作者
1.
#94
my guess is that it sticks to the following assumption (also mentioned in Schweser notes 'Investment Analysis')
- either the amortization schedule is provided
- either it's interest-only loan
I think it uses 'interest-only' (which actually conflicts with the fact that it's 30-year loan)
- the mortgage balance won't reduce much in the first 5 year though, so this approximation is still tolerable, I guess 
2.
#95
'interest-only' => debt service equal to interest expense (no principal reduction!)
3.
a better example is the one in the CFA book
==================================
Debt contribution: a fixed-rate mortgage is obtained for $393,750 at 8 percent per annum (compounded monthly) for 30 years. The monthly payment to amortize this loan is $2,889.20
(Level II Volume 5 Alternative Asset Valuation and Fixed Income , 5th Edition. Pearson Learning Solutions p. 18).
interest expense
??31,381
??31,108
??30,812
??30,492
annual debt service = 34,670 (= 2889.20 *12)
(I/Y, N, PV, FV=0 -> PMT = $2,889.20 )
mortgage balance initial = 393,750
mortgage balance outstanding = 378,862
the difference between the annual debt service and annual interest expense is not so big relative to the amount of loan
total difference (principal reduction) = reduction in mortgage balance = about 15,000 |
|
