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26. You can afford a monthly mortgage payment of no more than $795. The home you have your eyes on is priced at $176,000. Assuming

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26. You can afford a monthly mortgage payment of no more than $795. The home you have your eyes on is priced at $176,000. Assuming your lender will lend 80% LTV and you can afford the downggyment, and interest rates are 4.35% over 360 months, does it appear this house meets your standards for affordability? a. No, the payment is above $795 b. Yes, the payment is affordable c. The payment is $534.56 d. Home lenders never offer 360 month loans 27. What is the holding period yield for an investor who pays $1,145 for a bond with a $1,000 face value and a 5% coupon and sells the bond three years later for $1,420 ? a. 5.00% b. 6.86% c. 11.52% d. 3.78% 28. A very wise man once said "Everything is Real Estate, and Real Estate is Everything." a. True b. False

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