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can you please show the step by step solution. please do not skip steps. Please try to refrain from using Excel Problem # 7 :
can you please show the step by step solution. please do not skip steps. Please try to refrain from using Excel Problem #: A financier has made a loan of $ million. The contract for the loan calls for payment of interest quarterly at a nominal annual rate of until the full principal is repaid in one lump sum at the end of years. After years have gone by immediately after the quarterly payment, the financier decides to sell the asset to an investor. If the investor values these cash flows with a nominal annual rate of when compounded quarterly, what value would the investor consider the remaining loan contract to be worth?
can you please show the step by step solution. please do not skip steps. Please try to refrain from using Excel
Problem #: A financier has made a loan of $ million. The contract for the loan calls for payment of interest quarterly at a
nominal annual rate of until the full principal is repaid in one lump sum at the end of years. After
years have gone by immediately after the quarterly payment, the financier decides to sell the asset to an investor.
If the investor values these cash flows with a nominal annual rate of when compounded quarterly, what
value would the investor consider the remaining loan contract to be worth?
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