It is 2019, and you work in finance for a large international media company. Your firm took out a $500m amortizing fixed

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answerhappygod
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It is 2019, and you work in finance for a large international media company. Your firm took out a $500m amortizing fixed

Post by answerhappygod »

It is 2019, and you work in finance for a large international
media company. Your firm took out a $500m amortizing fixed-rate
commercial mortgage on your U.S. corporate headquarters two years
ago. The coupon rate on the mortgage is 5%, and the loan initially
had a 25 year amortization period, and a 10 year balloon payment.
(Note: Since two years have passed, this balloon payment will now
occur in eight years time) c. Calculate the monthly payment on
this mortgage and the current face value on this
mortgage.
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