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Question 13
[Note: The information presented here applies to questions 13 - 15] You are purchasing an office
building in Brooklyn for $12M and finance the acquisition with a $7.2M senior mortgage with a
5.5% interest rate. The loan has a 10-year term and 25-year amortization period. Assuming
payments are made on an annual basis, what is the scheduled payment for this mortgage?
Question 14
What is the balance due at maturity?
Question 15
If you pay an origination fee of $80,000 at closing, what is the effective cost of borrowing
associated with this loan assuming you hold the loan to maturity?

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Question 13[Note The information presented here applies to questi.pdf

  • 1. Question 13 [Note: The information presented here applies to questions 13 - 15] You are purchasing an office building in Brooklyn for $12M and finance the acquisition with a $7.2M senior mortgage with a 5.5% interest rate. The loan has a 10-year term and 25-year amortization period. Assuming payments are made on an annual basis, what is the scheduled payment for this mortgage? Question 14 What is the balance due at maturity? Question 15 If you pay an origination fee of $80,000 at closing, what is the effective cost of borrowing associated with this loan assuming you hold the loan to maturity?