A real estate company borrows SEK 100 million via an annuity loan, i.e. the company receives today

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A real estate company borrows SEK 100 million via an annuity loan, i.e. the company receives today 100 MSEK (10M $). The loan has a maturity of 10 years and the market rate is 1.35%.

The company's annual payment is 10 757 431 SEK

The amortization in the first year is 9 407 431 SEK

How much is the outstanding loan debt (OLB) at mid-term of the loan, i.e. after five years?

Related Book For answer-question

Auditing a business risk appraoch

ISBN: 978-0324375589

6th Edition

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

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Posted Date: Apr 07, 2023 01:13 AM

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A real estate company borrows SEK 100 million via an annuity loan, i.e. the company receives today

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To find the outstanding loan debt OLB after five years we can use the f... View the full answer

Auditing a business risk appraoch

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