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10. Determine the discount points necessary to provide a yield-to-maturity of 10 percent for the following mortgages with 30-year maturities. Mortgage Monthly Payment ($) Coupon
10. Determine the discount points necessary to provide a yield-to-maturity of 10 percent for the following mortgages with 30-year maturities.
Mortgage | Monthly Payment ($) | Coupon rate (%) | Amount at Origination ($) | Discount points ($) |
A | $800 | N/A | 100,000 |
|
B | 900 | N/A | 110,000 |
|
C | 950 | N/A | 125,000 |
|
D | 700 | N/A | 110,000 |
|
The correct answers are below, I just need to see the work to getting those answers
a.
$8,840 or 8.84%
b.
$7,444 or 6.76%
c.
$16,747 or 13.39%
d.
27.49%
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