Show steps to calculation with screenshots of exce!!!! - A lender wants to achieve a 8.5% yield (MEY) on a 30-year amortization, monthly - payment loan with an 8-year maturity with balloon. How many disbursement discount points must the lender charge under the following circumstances: (a) Contract interest rate is 8% (b) Contract interest rate is 7.5%

Show steps to calculation with screenshots of exce!!!! - A lender wants to achieve a 8.5% yield (MEY) on a 30-year amortization, monthly - payment loan with an 8-year maturity with balloon. How many disbursement discount points must the lender charge under the following circumstances: (a) Contract interest rate is 8% (b) Contract interest rate is 7.5%

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Use the following information to answer the question: Loan amount: $245,000 Loan term: 30 years Contract interest rate: 6.00% Monthly payment: $1,468.8988 Total up-front financing costs paid to lender: $9,100 Up-front financing costs paid to third party service providers: $2.900 Calculate the lender's expected yield/IRR if the lender expects the borrower to keep the loan outstanding for the entire loan term. O None of the selections is correct 6.36% 6.00% 6.48% O 6.54%
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show steps to calculation with screenshots of excel !! Consider a $ 5,000,000, 8.5% APR, 30-year mortgage with monthly payments. What is the yield to maturity (YTM) of this loan under the following circumstances: (a) No points, fully - amortizing (b) Three points, fully amortizing. Three points means that the present value is 3% lower than the loan amount in the YTM calculation. ( c) Three points, 7 - year maturity with balloon.