Question
You are getting a $100,000 mortgage and paying 2 points. What is the effective annual yield (in percentage) if it has 5% interest (this includes
You are getting a $100,000 mortgage and paying 2 points. What is the effective annual yield (in percentage) if it has 5% interest (this includes the impact of the points) and is 30 years?
Step by Step Solution
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Step: 1
First lets calculate the total amount paid in points 2 points 100000 2000 ...
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Step: 2
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
