Question
A borrower has secured a 30 year, $200,000 loan at 6% with monthly payments. Fifteen years later, an investor wants to purchase the loan from
A borrower has secured a 30 year, $200,000 loan at 6% with monthly payments. Fifteen years later, an investor wants to purchase the loan from the lender. If market interest rates are 5%, what would the investor be willing to pay for the loan (hint: pv of loan at mkt rate)? [Market Value of Loan Chapter 6]
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
