How many disbursement discount points must the lender


Consider a $4,000,000, 7%, 25-year mortgage with monthly payments and a 7-year maturity with a balloon. If the market yield is 7.5% (BEY), how many disbursement discount points must the lender charge to avoid doing a negative NPV deal from a market value perspective?

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Financial Management: How many disbursement discount points must the lender
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