Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000. Mortgage A has a 7.05% interest rate and requires Ann to pay 1.5 points upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann's annualized IRR from mortgage A?
Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000. Mortgage A has a 7.05% interest rate and requires Ann to pay 1.5 points upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann's annualized IRR from mortgage A?
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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