mortgage borrower has an outstanding debt at interest rate of J12= 13,08% and $1.034 monthly payments for 69 months remaining today. Another bank is offering the same monthly payments but for 63 months only at a lower interest rate. For the refinancing, borrower has to pay $1.800 expense today. Decide if the borrower should refinance the debt or not by showing the difference of discounted values of two alternatives. ....

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
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hey, can you please solve this manual and not on excel? Thank you.

mortgage borrower has an outstanding debt at interest rate of J12= 13,08% and $1.034
monthly payments for 69 months remaining today. Another bank is offering the same monthly
payments but for 63 months only at a lower interest rate. For the refinancing, borrower has to
pay $1.800 expense today. Decide if the borrower should refinance the debt or not by
showing the difference of discounted values of two alternatives.
....
Transcribed Image Text:mortgage borrower has an outstanding debt at interest rate of J12= 13,08% and $1.034 monthly payments for 69 months remaining today. Another bank is offering the same monthly payments but for 63 months only at a lower interest rate. For the refinancing, borrower has to pay $1.800 expense today. Decide if the borrower should refinance the debt or not by showing the difference of discounted values of two alternatives. ....
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