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Show in Excel please Questions #1. Suppose that our investor is purchasing a two-unit industrial building. The investor will finance this acquisition, in part, with
Show in Excel please
Questions #1. Suppose that our investor is purchasing a two-unit industrial building. The investor will finance this acquisition, in part, with a $3,000,000 fixed-rate mortgage loan from a local bank. According to the terms of the loan, the investor is required to make monthly payments based on an interest rate of 4.25 percent for 5 years, at which point the loan matures. However, the mortgage payments are to be established with an amortization period of 25 years. a. What are the monthly and annual payments? b. How much interest will be paid over the term of the loan? c. How much is still owed when the loan matures? d. If the market yield is 5.5 percent for a loan of this type, how many disbursements discount points must the lender charge on this loan to avoid doing a negative NPV deal from a market value perspectiveStep by Step Solution
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