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) A price level adjustable mortgage (PLAM) is made with the following terms: - Loan Amount and 95.000 - Tenn of the loan 30 years
) A price level adjustable mortgage (PLAM) is made with the following terms: - Loan Amount and 95.000 - Tenn of the loan 30 years Points 6 percent Payment to be adjusted at the beginning of each year. Assuming inilation is expected to increase at the rate cf6 percent per year for the next five years i) Compute the rayment of the beginning of the year. ii) What is the loan balance of the end of the fifth year? What is the yield to the lender on such a mortgage? ) A price level adjustable mortgage (PLAM) is made with the following terms: - Loan Amount and 95.000 - Tenn of the loan 30 years Points 6 percent Payment to be adjusted at the beginning of each year. Assuming inilation is expected to increase at the rate cf6 percent per year for the next five years i) Compute the rayment of the beginning of the year. ii) What is the loan balance of the end of the fifth year? What is the yield to the lender on such a mortgage
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