A bank issues a $3 million commercial mortgage with a nominal APR of 8%. The loan is

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A bank issues a $3 million commercial mortgage with a nominal APR of 8%. The loan is fully amortized over 10 years, requiring monthly payments. The bank plans on selling the loan after two months. If the required nominal APR increases by 45 basis points when the loan is sold, what loss does the bank incur?

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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