How many disbursement discount points must the lender charge

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Reference no: EM131328186

1. Consider a $4,000,000, 7%, 25-year mortgage with monthly payments and a 7-year maturity with balloon. If the market yield is 8% (BEY), how many disbursement discount points must the lender charge to avoid doing a negative NPV deal from a market value perspective?

3 points

4 points

2 points

1 point

2. The factors of production are

a. land, labor, capital, and entrepreneurial ability.

b. interest, wages and dividends

c. payments and receipts of interest, dividends, and other income on foreign investments that were previously made.

d. none of the above

Reference no: EM131328186

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