Question
Consider a 20-year (monthly-payment), 8%, $80,000 mortgage with 2 points prepaid interest up front. How much is the previous mortgage worth in the secondary market
Consider a 20-year (monthly-payment), 8%, $80,000 mortgage with 2 points prepaid interest up front. How much is the previous mortgage worth in the secondary market if the prevailing YTM in that market is 7.75%? (Assume the loan is held to maturity.)
Question options:
| $78,000. | |
| $80,000. | |
| $81,510. | |
| $107,064. |
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The Handbook Of Credit Risk Management
Authors: Sylvain Bouteille, Diane Coogan-Pushner
2nd Edition
1119835631, 978-1119835639
