Question
Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,250,000. Mortgage A has a 4.38% interest rate and requires
Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,250,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Assuming Ann makes payments for 30 years, what is Anns annualized IRR from mortgage A? 2.51% 4.51% 4.39% 2.39%
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
