30-year FRM loan of $100,000 is issued at an annual interest rate of 5.50% with monthly amortization.

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30-year FRM loan of $100,000 is issued at an annual interest rate of 5.50% with monthly amortization. However, the borrower is required to pay 2 discount points. What is the expected yield on this loan at years 1, 5, 10, and 30? What is the APR?

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Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Jun 12, 2023 01:48 AM

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30-year FRM loan of $100,000 is issued at an annual interest rate of 5.50% with monthly amortization.

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To calculate the expected yield on the loan at different years we need to calculate the remaining principal balance at each year and the total interes... View the full answer

Income Tax Fundamentals 2013

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