2. A hank issues a $100,000 fixed-rare 3D-year mort- gage with a nominal annual rate of 4,596....

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2. A hank issues a $100,000 fixed-rare 3D-year mort-

gage with a nominal annual rate of 4,596. If the required rate drops to 4.0%, immediately after the mortgage is issued. what is the impact on the value Of the mortgage?

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Financial Markets and Institutions

ISBN: 978-0321280299

5th edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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