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5. A lender wants to achieve a yield (YTM or IRR) of 7.25% on a 25-year amortization, monthly-payment loan with a 10-year term (i.e.
5. A lender wants to achieve a yield (YTM or IRR) of 7.25% on a 25-year amortization, monthly-payment loan with a 10-year term (i.e. maturity) with balloon. How many points must the lender charge upfront if the contract interest rate is 6.75%? [Use any loan amount you want]
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To calculate the upfront charge points the lender must impose we need to consider the terms of the l...
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
8th edition
78025745, 978-0078025747
