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To help pay for university, you have just taken out a $ 1 0 0 0 government loan that makes you pay $ 1 5

To help pay for university, you have just taken out a $1000 government loan that makes you pay $154 per year for 25 years. However, you don't have to start making these payments until you graduate from university three years from now. Why is the yield to maturity necessarily less than 15%?(This is the yield to maturity on a normal $1000 fixed-payment loan on which you pay $154 per year for 25 years.)
If your loan ( $154 per year for 25 years starting three years from now) had the same yield to maturity as a normal fixed-payment loan with payments of $154 per year for 25 years, then the present value of each $154 payment on your loan would be the present value of each corresponding $154 payment on the normal fixed-payment loan, and therefore today's value of your loan would be today's value of the normal fixed-payment loan. For today's value of your loan to be the same as today's value of the normal fixed-payment loan, the present values of your yearly payments must For that to happen, the yield to maturity on your loan must since yield to maturity is the present values of your payments.
Options for 1st and 2nd blank: equal to, less than or greater than
Options for 3rd and 4th blank: increase or decrease
Options for 5th blank: subtracted from, added to, in the numerators of, in the denominators of
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