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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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