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Sam bought a house that costs $1,000,000. Sam got a 105% LTV loan. The lender demanded that Sam buy private mortgage insurance to insure the
Sam bought a house that costs $1,000,000. Sam got a 105% LTV loan. The lender demanded that Sam buy private mortgage insurance to insure the portion
of the loan over 80% LTV. Suppose 5 years later, Sam's mortgage balance is $900,000. However, Sam defaults and his house sells for $600,000 in a foreclosure auction. How much will the mortgage insurance company pay Sam's lender?
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Advanced Bond Portfolio Management
Authors: Frank J. Fabozzi, Lionel Martellini, Philippe Priaulet
1st Edition
0471678902, 9780471678908
