After graduating from nyu stern, you join the cre originations business at a large commercial bank. in your first deal, your bank originates a $35m fixed rate commercial mortgage with a 4.75% annual interest rate, 10 year term, 30 year amortization period, and monthly payments. what is the size of the balloon payment due on this mortgage?

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?