2 Recall from class that an interest-only twenty-year Canadian mortgage features equal monthly coupon payments calculated from the actual monthly coupon rate, corresponding to its announced annual rate, on the initial balance Bo. The initial balance, in such a mortgage, remains the unpaid balance over all 240 months maturity, and consequently has a terminal balance equal to its initial balance. 2 Recall from class that an interest-only twenty-year Canadian mortgage features equal monthly coupon payments calculated from the actual monthly coupon rate, corresponding to its announced annual rate, on the initial balance Bo. The initial balance, in such a mortgage, remains the unpaid balance over all 240 months maturity, and consequently has a terminal balance equal to its initial balance