Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all 3 questions pleaseeee B D F G K L 43 Interest for a floating rate deal with 1.25% teaser rate, 1.5% annual

please answer all 3 questions pleaseeee
image text in transcribed
B D F G K L 43 Interest for a floating rate deal with 1.25% teaser rate, 1.5% annual cap, 7.5% lifetime cap 2.5% spread with index of 2%, 2.755%,3.5%,4.5%, 5.75% for years 1,2,3,4,5, respectively. Calculate the total interest paid on an interest only loan of $1,000,000 over the five years. 44 A property was bought for $70 million and was sold 10 years later for $140 million. The property was initially financed with a 65% LTV mortgage. The interest rate on the mortgage was 4% and had a 30 year amortization schedule. The property generates $7,600,000 per year. There are fees associated with the loan: 1 point at originations and 1 point at sale What is the annualized rate of return. + 45 What is the lenders yield on a 4.25% mortgage, 360 month amortization schedule with a $1,00,000 balance if the lender charges 5% in fees? Sheet1 + Ready

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Theory

Authors: Jean-Pierre Danthine, John B. Donaldson

2nd Edition

0123693802, 978-0123693808

More Books

Students also viewed these Finance questions

Question

What is one of the skills required for independent learning?Explain

Answered: 1 week ago

Question

Language in Context?

Answered: 1 week ago