A partially amortizing loan for $106,000 for 10 years is made at4 percent interest. The lender and borrower agree that paymentswill be monthly and that a balance of $20,000 will remain and berepaid at the end of year 10.
Required:
a. Assuming 3 points are charged by thelender, what will be the yield if the loan is repaid at the end ofyear 10?
b. What must the loan balance be if it isrepaid after year 4?
c. What will be the yield to the lender ifthe loan is repaid at the end of year 4?
(For all requirements, do not round intermediatecalculations, round your final answers to 2 decimalplaces.)
A partially amortizing loan for $106,000 for 10 years is made at 4 percent interest. The lender and borrower agree that
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am