Consider a $5,000,000, 10% rate, 30-year mortgage with constant annual payments, fully amortizing. What is the yield

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Consider a $5,000,000, 10% rate, 30-year mortgage with constant annual payments, fully amortizing. What is the yield to maturity (YTM) of this loan under the following circumstances:

(a) No points

(b) Three points of disbursement discount (paid by the borrower)

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Sep 15, 2023 01:49 AM

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Consider a $5,000,000, 10% rate, 30-year mortgage with constant annual payments, fully amortizing. What is the yield

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Expert Answer:

The following formula can be used to get the yield to maturity YTM of a mortgage with constant annual payments that is completely amortizing PVCr1Lrnr ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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