Given the following information,calculate the lender's yield.Loan amount: $166,950,Term: 30 years,Interest rate: 8 %,Payment: $1,225.00,Discount points: 2.

Question

Quizplus · Accepted Answer

The lender's yield is the effective interest rate earned on the loan after accounting for any upfront costs the borrower paid. In this case, the borrower paid 2 discount points upfront, which is equal to 2% of the loan amount. Therefore, the loan amount after discount points is $163,621. To calculate the lender's yield, we need to use Excel or a financial calculator to find the internal rate of return (IRR) of the loan payments, which is 8.2%. Therefore, the best choice is C, 8.2%.

Given the Following Information,calculate the Lender's Yield