Question
Consider a mortgage for $10,000,000 with a 15-year maturity and an annual interest rate of 7.0%. The mortgage requires regular monthly payments and three balloon
Consider a mortgage for $10,000,000 with a 15-year maturity and an annual interest rate of 7.0%. The mortgage requires regular monthly payments and three balloon payments of $2,000,000 each. The balloon payments are due at the end of year 5, 10, and 15. What is the regular monthly payment that makes this loan fully amortizing by the end of the 15-year term?
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PRESENT VALUE OF BALLOON AT 5 YEARS20000001007 5 1...
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
