Assume a $100,000 mortgage loan with 30-year term. The lender is charging an annual inte rate of 10% and two discount points at origination. Up-front financing costs paid to third par total $1,000. Assuming the mortgage is held for five years and no prepayment, the lender's yield is percent. (round to two decimal places)

Assume a $100,000 mortgage loan with 30-year term. The lender is charging an annual inte rate of 10% and two discount points at origination. Up-front financing costs paid to third par total $1,000. Assuming the mortgage is held for five years and no prepayment, the lender's yield is percent. (round to two decimal places)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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