What is the lender's yield for a $350,000 loan amortized over 15 years at a 5.5% interest rate. The buyer paid 2 discount points. Other closing costs including the origination fee totaled $7,500 . Third party payments are $3,500 . A) 5.81% B) 5.97% C) 5.50%

What is the lender's yield for a $350,000 loan amortized over 15 years at a 5.5% interest rate. The buyer paid 2 discount points. Other closing costs including the origination fee totaled $7,500 . Third party payments are $3,500 . A) 5.81% B) 5.97% C) 5.50%

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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Question

What is the lender's yield for a

$350,000

loan amortized over 15 years at a

5.5%

interest rate. The buyer paid 2 discount points. Other closing costs including the origination fee totaled

$7,500

. Third party payments are

$3,500

A) 5.81%

B) 5.97%

C) 5.50%

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