A mortgagee wishes to sell his interest in a closed mortgage contract that was written 21 months ago. The original loan was for $60,000 at 6.8% compounded semiannually for a 5-year term. Monthly payments are being made on a 20-year amortization schedule. What price can the mortgagee reasonably expect to receive if the current semiannually compounded interest rate on three-year and four-year term mortgages is
a. 6%?
b. 6.8%?
c. 7.5%?