Question
A bank makes a 30-year fully amortizing FRM for $100,000 at an annual interest rate of 7% compounded monthly, with monthly payments. What is the
A bank makes a 30-year fully amortizing FRM for $100,000 at an annual interest rate of 7% compounded monthly, with monthly payments.
What is the market value of this loan five years later if the annual market interest rate for this loan drops to 4%?
(Show your answer rounded to two decimal places.)
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
