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How many disbursement discount points must the lender charge

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Reference no: EM131734736

Question: A lender wants to achieve a 7.5% yield (MEY) on a 30-year amortization, monthly-payment loan with an eight-year maturity with balloon. How many disbursement discount points must the lender charge under the following circumstances?

a. Contract interest rate is 7.25%.

b. Contract interest rate is 7.0%.

Reference no: EM131734736

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