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1 5 . Suppose that you borrow a $ 3 0 0 , 0 0 0 of 1 0 years of a mortgage loan to

15 .

Suppose that you borrow a $

300, 000

10

years of a mortgage loan to purchase a house. If you are required to make an annual payment of $

35, 000 .

What is the yield to maturity accruing to the lender? Write down the appropriate equation, calculation procedure, and the answer.

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