Question 15 3.3 pts A commercial borrower has a $12,000,000 interest-only mortgage at 8% interest rate for 15 year. There is a lockout period of 10 years for the loan. The mortgage has a prepayment penalty if the borrower prepay. Assuming the loan is prepaid at the end of year 12 and the mortgage interest rate at that time is 7%. How much is prepayment penalty, if the lender will charge a yield maintenance penalty. O $353,480 $319,118 $343,032 O $326,522
Question 15 3.3 pts A commercial borrower has a $12,000,000 interest-only mortgage at 8% interest rate for 15 year. There is a lockout period of 10 years for the loan. The mortgage has a prepayment penalty if the borrower prepay. Assuming the loan is prepaid at the end of year 12 and the mortgage interest rate at that time is 7%. How much is prepayment penalty, if the lender will charge a yield maintenance penalty. O $353,480 $319,118 $343,032 O $326,522
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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![Question 15
3.3 pts
A commercial borrower has a $12,000,000 interest-only mortgage at 8% interest rate for 15 year. There is a lockout period of 10 years for the
loan. The mortgage has a prepayment penalty if the borrower prepay.
Assuming the loan is prepaid at the end of year 12 and the mortgage interest rate at that time is 7%. How much is prepayment penalty, if the
lender will charge a yield maintenance penalty.
O $353,480
$319,118
$343,032
O $326,522](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe30c5dfd-22e5-43e4-a344-ec8c335a1df7%2F28cdcd5a-7f21-4224-8260-5aa53275b61d%2Fmowx15i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 15
3.3 pts
A commercial borrower has a $12,000,000 interest-only mortgage at 8% interest rate for 15 year. There is a lockout period of 10 years for the
loan. The mortgage has a prepayment penalty if the borrower prepay.
Assuming the loan is prepaid at the end of year 12 and the mortgage interest rate at that time is 7%. How much is prepayment penalty, if the
lender will charge a yield maintenance penalty.
O $353,480
$319,118
$343,032
O $326,522
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