+ent willA buyer bought a new home for $230,000. The lender agreed to loan the buyer $200,000 at3%% interest with six point discount. What approximate yield will this provide the lender?a. 3.75% |b. 4.00%C 4.25%d. 4.50%Correct Answer

Yield to the lender refers to the return or profit earned by the lender on their loan or investment.…

Answered: A buyer bought a new home for $230,000.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A buyer bought a new home for $230,000. The lender agreed to loan the buyer $200,000 at 3% % interest with six point discount. What approximate yield will this provide the lender? a. 3.75% | b. 4.00% C 4.25% d. 4.50% I Correct Answer