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Calculate for a loan of $1,000,000 at 5% with monthly payments and a 30 yearterm, the effective yield to the lender assuming 6 points were
Calculate for a loan of $1,000,000 at 5% with monthly payments and a 30 yearterm, the effective yield to the lender assuming 6 points were paid under the following scenarios:
a. if held to maturity.
b. if paid off at end of year 5.
c. if a prepayment penalty of 4% were charged at end of year 5.
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