Consider a 2 million 75 30-year mortgage with monthly


Question: Consider a $2 million, 7.5%, 30-year mortgage with monthly payments. What is the YTM of this loan under the following circumstances?

a. No points, fully amortizing

b. Two points of disbursement discount, fully amortizing

c. Two points of disbursement discount, eight-year maturity with balloon

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Finance Basics: Consider a 2 million 75 30-year mortgage with monthly
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