Question
Find the effective borrowing cost of the following loan: Term 30 years Payments per year 12 Loan amount $11,400,000 Contract rate 5.0% Loan points 1.2%
Find the effective borrowing cost of the following loan:
Term 30 years
Payments per year 12
Loan amount $11,400,000
Contract rate 5.0%
Loan points 1.2%
Loan expenses $40,000
Expected prepayment 5 years
Prepayment penalty 0.5% of outstanding balance on prepay date
show excel if possible
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International Business Finance
Authors: Michael Connolly
1st Edition
0415701538, 9780415701532
