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2. (12 points) Suppose that a commercial mortgage has the following terms: 10 loan for $20,000,000 with a term of 10 years and requiring monthly

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2. (12 points) Suppose that a commercial mortgage has the following terms: 10 loan for $20,000,000 with a term of 10 years and requiring monthly payments at an annual rate of 5.75%. In addition, if the loan is prepaid at any point prior to maturity, the borrower must pay a yield maintenance fee (YMF). The YMF is calculated assuming that the lender's reinvestment rate is 0%. If the borrower prepays in full at the end of year 7, what YMF must the borrower pay

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