Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the yield to the lender on a $1,000,000 loan at 10 percent with monthly payments over 20 years if 5 points are charged

image text in transcribed

What is the yield to the lender on a $1,000,000 loan at 10 percent with monthly payments over 20 years if 5 points are charged at origination if the loan is paid (without penalty) at the end of the sixth year, rather than held to maturity? 10.00 percent 11.21 percent 11.64 percent 11.50 percent 9.80 percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

15th edition

77861612, 1259194078, 978-0077861612, 978-1259194078

More Books

Students also viewed these Finance questions