You are contemplating financing (interest only) on a $10,000,000 shopping center. A lender has offered a 72%
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You are contemplating financing (interest only) on a $10,000,000 shopping center. A lender has offered a 72% loan with an interest rate of 7%. Another lender is offering a mortgage loan for 80% LTV, but wants an 8% interest rate. What is the effective interest rate on the additional debt contemplated in the second loan? Ch12
| a. | 23.0 % | |
| b. | 1.0% | |
| c. | 12.4% | |
| d. | 17.0% |
Expert Answer:
To find the effective interest rate on the additional debt contemplated in the second loan we need t... View the full answer
Related Book For 
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Posted Date:
