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A Mortgage Loan Manager at First Security Bank wants to sell one of the banks mortgage loans to an Investor . The monthly payment of
- A Mortgage Loan Manager at First Security Bank wants to sell one of the banks mortgage loans to an Investor. The monthly payment of the loan is $828.31/month. The principal amount outstanding is $150,000. The loan term is 30 years. The APR is 5.25%. If the Investor buys the loan with a 5.125% yield, what price will the Investor have to pay? What will First Securitys profit on the sale be?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
