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What is the investment return on a self-liquidating note purchase for $1.1 million where the remaining...

What is the investment return on a self-liquidating note purchase for $1.1 million where the remaining term is 18 years and the payment is $11,000 monthly.

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Answer #1

Present Value of Note = $1,100,000

Monthly Payment = $11,000

Term = 18 years

No of monthly Payments = 18 years*12 = 216

Calculating the Investment return of on a self-liquidating note using Excel "RATE" Function:-

So, the Investment return of on a self-liquidating note is 0.834%

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