how do i price an interest-rate cap?
369382
When signing a note it will have the floor rate, the index, the minimum adjustments in months and the max rate. With most mortgages it is typically 6% over the start rate.
634179
Never offer the full asking price. I would start out offering 10,000 less than they are asking. They'll probably negotiate with you till you come to a happy medium. Happy house buying!
108996
This is not enough information. \n\nYou need to supply a salvage value at the end of year 6, or an income stream that goes on forever.\n\nAlso you need to supply the interest rate if you want to know when it breaks even. The other option is to just ask for the IRR, internal rate of return. (this is what the bank would be paying if you opened an account and deposited and took out money as you described)\n\nThe internal rate of return for the project you listed is 0.61% assuming the sixth year payment is the return value and there is then nothing left. If thats the case you should NOT embark on the project as the riskless rate of return (govt bond) is much higher.\n\nIf alternatively you still have the $1,000,000 at the end then the return is 16.55%. Now I would say it has potential as long as the numbers described are not the best case scenarios. If the thing appreciates then even better. It drops to 10% IRR if the end salvage value is about $448,000 just to show where you might consider the cuttoff to be if 10% was a good return for you.
1000388
The treasury site is here:  http://www.publicdebt.treas.gov/\nThere are calculators linked on the site that tell you how much they're worth and the current interest rate.
960724
NONE. They are very very very very bad. The interest rates are about 250% to 500% or more. Do not do this.
384522
The way bonds work, you only get the face value at the end of the term, if you are to sell it early, then you have to accept market price which may be more or less than $500. The market price depends on the coupon rate, which is how much money your bond is getting you, for example, if you get $50 a year, that is a %10 coupon rate, VS, the market rate, which is the yield being traded in the market. So if you your coupon rate is higher than the market you can sell it over $500 if less, than  opposite, but if it was issued last March, very little probably changed and you would probably get from $490-510 for selling it.
687305
you state the price you want and they will charge your CC if it is accepted.  Start low.
1130953
Take the original/wholesale price, and divide it by .35\nThis will equal your selling price. (with 65% markup)
632234
well i usally set a per 30min rate. \nwhich is about 10-30UK pounds, which is about 18-54 dollars per half hour. \nwith a preset charge of 1 hour.
641632
i have the same problem... just don't max it out in a day... the trick is to pay it off each month... that way you don't get charged interest.
65652
There are two kind of prices...\n\n1) price to sell\n\n2) price to not sell\n\nIf you're hurry just consider the first option...
481667
try going to a local auctioneer and get it valued or try valuations on line to get a rough quote i would like to give you 50 pence no ok then
47343
try going to a foreign bank, they can figure out the best price for you.
203534
There's a few of them on eBay.  You could set your price around theirs or go higher and hope you get a better bite.
910718
Did you mean to say "interest rate RISK"?  Well, the simplest way to manage interest rate risk is not to have it (i.e., borrow at a fixed, rather than floating, interest rate).  If you do have to borrow at a floating rate, you can hedge your risk with interest rate futures, forward rate agreements, or swaps...
626405
Let´s use an example. \n\nSay interest rates are 4%. You buy a 30 year U S Government bond paying interest at 4%. You pay $1000 for the bond. Then interest rates go to 5%. But the bond you  bought pays only 4%. Is anyone going to give you $1000 for that bond. The answer is no. Because they can buy a bond that pays 5%. The value of your 4% bond has to reflect the 5% interest rate. The bond is worth about $810 and will pay interest at 4.9% The remaining 0.1 % will be made up by the increase in the value of the bond as it approaches maturity in 30 years.
319530
I don't know of a way to sell w/o being charged. Sorry