Question
The bank issued a $200,000 30-year mortgage (monthly payments) with an annual interest rate of 11.5%, compounded monthly. They just received payment number 109 and
The bank issued a $200,000 30-year mortgage (monthly payments) with an annual interest rate of 11.5%, compounded monthly. They just received payment number 109 and have decided to sell the loan. The buyer of the loan expects to receive an annual rate of return equal to 8.80%, compounded monthly. For the original bank that issued the loan, what was the internal rate of return?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
