A bank offers two 30 year fixed rate fully amortizing lpms


A bank offers two 30 year, fixed rate, fully amortizing LPMs: an 85% LTV loan at 6%, and an 80% LTV loan at 5.5%. What is the marginal cost of borrowing if the loan is going to be held for 10 years?

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Finance Basics: A bank offers two 30 year fixed rate fully amortizing lpms
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