F H core Five years ago, your bank loaned $100 mi to a hotel REIT @10 year, quarterly amortizing loan 87% Now, you want to sell this loan to another bank. The prevailing market rate has increased by 150 bps. How much will the bank pay for the loan? Monthly Payment Loan balance of Old loan Market Value after 5 years 2 Loss due to Interest Rate Risk F H core Five years ago, your bank loaned $100 mi to a hotel REIT @10 year, quarterly amortizing loan 87% Now, you want to sell this loan to another bank. The prevailing market rate has increased by 150 bps. How much will the bank pay for the loan? Monthly Payment Loan balance of Old loan Market Value after 5 years 2 Loss due to Interest Rate Risk