A dealer is paying 8 percent interest on a $5 million mortgage.
The dealer issues $5 million in bonds to cover the mortgage.
The bond rate is 5.15 percent. But the dealer pays .10 percent to the underwriter and 1 percent to a bank for a letter of credit.
The dealer pays 6.25 percent in interest, 1.75 percentage points less than the original mortgage rate.
The savings amount to $87,500 a year.