What will be yield to lender if it is repaid after 8 years

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A loan for $50,000 is made for 10 years at 8 percent interest and no monthly payments are scheduled.

a. How much will be due at the end of 10 years?

b. What will be the yield to the lender if it is repaid after 8 years? (Assume monthly compounding.)

c. If 1 point is charged in (b) what will be the yield to the lender?

Reference no: EM131327342

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