A couple takes out a fully amortizing fixed rate thirty-year loan for $375,000. The couple makes monthly
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A couple takes out a fully amortizing fixed rate thirty-year loan for $375,000. The couple makes monthly payments and the annual interest rate on the loan is 4.5%. The couple also pays 3 points in up- front fees to obtain the loan.
(a) Calculate the loan’s APR
(b) Assuming a holding period of 12 years, calculate the loan’s EBC
Related Book For
Introduction to Derivatives and Risk Management
ISBN: 978-1305104969
10th edition
Authors: Don M. Chance
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