You are an investor that is looking to purchase distressed property or notes

Finance Nov 24, 2020

You are an investor that is looking to purchase distressed property or notes. You come across a $100,000 mortgage loan at 4.00% on a 30-year amortization schedule which closed five days ago. Sudden changes in the market have driven interest rates to 6.00%. The investor is willing to sell the note at a 15% discount to the original face amount of $100,000. a. Would you buy the Note? b. Would you buy the Note if the discount was 25%?

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