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5. What is the yield to a lender who funds a loan for $500,000 at 9% interest with monthly payments over 15 years that wraps
| 5. What is the yield to a lender who funds a loan for $500,000 at 9% interest with monthly payments over 15 years that wraps around an existing loan for $300,000 at 5% interest with monthly payments for 10 years remaining? Use the IRR function. | ||||||
| Existing Loan | ||||||
| Loan Amount | ||||||
| Annual Interest Rate | ||||||
| Maturity (in years) | ||||||
| Periods per year | ||||||
| Monthly Payment | ||||||
| Wraparound Loan | ||||||
| Loan Amount | ||||||
| Annual Interest Rate | ||||||
| Maturity (in years) | ||||||
| Periods per year | ||||||
| Monthly Payment | ||||||
| Month | Cash Flow | Yield to Wraparound Lender | ||||
| 0 | ||||||
| 1 | Would you be very surprised if the prevailing rate for junior mortgage loans in this market is greater than 12.5%? (just a thinking question, not graded) | |||||
| 2 | ||||||
| 3 | ||||||
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| 5 | ||||||
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Weathering The Storm A Quick Guide To Safeguarding Your Finances During Economic Recession
Authors: Liam Wilhelm
1st Edition
979-8864393628
