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Please show all work. Harry obtained a loan of $6,500,000 at 20% for 25 years term with a 4% prepayment penalty five years ago. However,
Please show all work.
Harry obtained a loan of $6,500,000 at 20% for 25 years term with a 4% prepayment penalty five years ago. However, a new loan became available at a contract rate of 7.5% for 20 years with 5% origination fees. Should Harry refinance, if the discount rate is 6.5%?
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