Question
A lender made a $10,000,000 loan with monthly payments, a 5% interest rate, a 30-year maturity, and a prepayment restriction. 5 years after origination, comparable
A lender made a $10,000,000 loan with monthly payments, a 5% interest rate, a 30-year maturity, and a prepayment restriction. 5 years after origination, comparable interest rates have dropped to 4%. What is the value of the loan at that point in time?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
