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can you please help me to solve this using a financial calculator BA II plus?
Question 6 0/1 pts Courses Groups What is the effective yield on a 35-year fixed rate mortgage if 12 points are charged and t
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Answer #1

Points are charged 12%. it means upfront amount deducted 12%  
Nominal interest rate (r) in case of points = Interest rate/(1-points deducted)  
5.75%/(1-12%)  
0.06534090909  
No of compounding in year (m)=   12
  
Effective interest rate = ((1+(r/m))^m)-1  
((1+(0.06534090909/12))^12)-1  
0.06733368899  
So effective interest rate is 0.0673  
  

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