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Please answer using excel thank you! Your bank has agreed to loan you $1,000,000 today at an interest rate of 2.88% (with annual payments), an
Please answer using excel thank you!
Your bank has agreed to loan you $1,000,000 today at an interest rate of 2.88% (with annual payments), an amortization term of 20 years, and maturity of 5 years (the balance of the loan must be fully repaid at the end of year 5). The loan includes a participation that entitles the lender to 50% of any property NOI in excess of $102,000 for any year during the life of the loan. Given these loan terms, calculate the lender's yield associated with this loan assuming the property produces the following NOI over the next five years. (Answer in percentage points to two decimal places, e.g. 3.25% should be entered as 3.25, not 0.0325.) Your bank has agreed to loan you $1,000,000 today at an interest rate of 2.88% (with annual payments), an amortization term of 20 years, and maturity of 5 years (the balance of the loan must be fully repaid at the end of year 5). The loan includes a participation that entitles the lender to 50% of any property NOI in excess of $102,000 for any year during the life of the loan. Given these loan terms, calculate the lender's yield associated with this loan assuming the property produces the following NOI over the next five years. (Answer in percentage points to two decimal places, e.g. 3.25% should be entered as 3.25, not 0.0325.)Step by Step Solution
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