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How much is this loan worth at issuance if the market ytm

Question: Consider a $2 million, 7.5%, 30-year mortgage with monthly payments and an eight-year maturity with balloon.

a. How much is this loan worth at issuance if the market YTM for such loans is 7.125% BEY?

b. If instead the market yield is 7.875%, how many disbursement discount points must the lender charge to avoid doing a negative NPV deal?

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Finance Basics: How much is this loan worth at issuance if the market ytm

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Finance Basics: How much is this loan worth at issuance if the market ytm

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