Residential loans are often resold by lenders to third parties after the loan origination. There is...
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Residential loans are often resold by lenders to third parties after the loan origination. There is a relationship between the market value of these loans and the current market rate of interest. Bank of Orange gave a loan of $140,000 to John with 25-year maturity and an APR of 10.5%. Ten years later the market rate of interest has dropped to 9.25%. What is the market value of this loan at this time? Residential loans are often resold by lenders to third parties after the loan origination. There is a relationship between the market value of these loans and the current market rate of interest. Bank of Orange gave a loan of $140,000 to John with 25-year maturity and an APR of 10.5%. Ten years later the market rate of interest has dropped to 9.25%. What is the market value of this loan at this time?
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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