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Calculate the expected yield of a $100,000 loan under the following terms. 6.40% Rate, 30-year amortization, 1 point disbursement discount, 1% prepayment penalty, 7-year term.
Calculate the expected yield of a $100,000 loan under the following terms. 6.40% Rate, 30-year amortization, 1 point disbursement discount, 1% prepayment penalty, 7-year term. Assume that you intend to hold the loan for only 3 years.
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