Question
Question A borrower can obtain an 80% loan at 8.5% with monthly payments amortized over 30 years, or obtain a 90% loan at 9% with
Question
A borrower can obtain an 80% loan at 8.5% with monthly payments amortized over 30 years, or obtain a 90% loan at 9% with the same duration.
a. What is the incremental borrowing cost assuming the loan is held for the full term?
b. Assume that there will be 3 points charged on the 90% loan what is the new incremental cost of borrowing?
PLSSSSSSSSSSS solve both parts.
i need help quick plss
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The Oxford Handbook Of Credit Derivatives
Authors: Alexander Lipton, Andrew Rennie
1st Edition
0199546789, 978-0199546787
