Question: How do you find the yield to the lender for the following problem, using a financial calculator? A price level adjusted mortgage (PLAM) is made

How do you find the yield to the lender for the following problem, using a financial calculator?

A price level adjusted mortgage (PLAM) is made with the following terms:

$95,000

4% interest rate

30 year term

6% points

Payments to be reset at the beginning of each year. Assuming inflation is expected to increase at the rate of 6 % per year for the next 5 years. The loan balance at the end of the 5th year is $114,987.31 (adjusted for inflation). If solving as a cash flow problems, how to you compute on a finance calculator?

CFo = -89,300

CF1= 5442.48

CF2= 5769.12

CF3 = 6115.20

CF4= 6482.16

CF5= 6871.08 + ?

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