You pay off a 50 year, $50,000 loan at i = 3% by paying constant principle...

 

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You pay off a 50 year, $50,000 loan at i = 3% by paying constant principle of $1,000 at the end of each year. Immediately after the loan is made, the rights to all of the payments are sold at an interest. rate i= 4%. What is this price? You pay off a 50 year, $50,000 loan at i = 3% by paying constant principle of $1,000 at the end of each year. Immediately after the loan is made, the rights to all of the payments are sold at an interest. rate i= 4%. What is this price?

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To find the present value of the loan payments when sold at ... View the full answer