Question
1. For a $100,000 loan at an 8 percent nominal interest rate, with monthly payments and a 25-year term, how many points would the lender
1. For a $100,000 loan at an 8 percent nominal interest rate, with monthly payments and a 25-year term, how many points would the lender need to charge to increase the effective yield to 8.75 percent if the loan is outstanding to maturity?
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Case Studies In Finance
Authors: Robert Bruner, Kenneth Eades, Michael Schill
6th Edition
0073382450, 978-0073382456
