Solve for Risk-Adjusted Internal Rate of Return (IRR)

Solve for Risk-Adjusted Internal Rate of Return (IRR)

Usage

solve_irr(
  abs0_bal,
  cur_age,
  orig_term,
  orig_loan_amt,
  mon_pmt,
  recov_curve,
  prbs,
  orig_apy = 0.15
)

Arguments

abs0_bal

Current loan balance (to match EPV against).

cur_age

Current age of the loan in months.

orig_term

Original loan term in months.

orig_loan_amt

Original loan amount.

mon_pmt

Monthly payment amount.

recov_curve

Recovery curve data frame.

prbs

CDF and density probabilities from abslife.

orig_apy

Internal loan APY for amortization. Defaults to 0.15.

Value

List with risk adjusted monthly rate, annualized rate, and objective value.