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1) Yield maintenance - the loan was originated with a 7.5% rate, on $350,000 loan, 30-year amortization with a ten-year term. With 2.5 years remaining on the term the borrower wants to prepay the loan with a current interest rate for 2.5 years of 3.75%, what is the prepayment fee?

2) Same basic facts as above, but the current interest rate is 8%, what is the yield maintenance fee?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92815884

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