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3. (Graduate Payment Mortgage) Consider a $2 million, 8%, 30-year Graduate Payment Mortgage (GPM) with monthly payments and two annual step-ups of 10% each (one

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3. (Graduate Payment Mortgage) Consider a $2 million, 8%, 30-year Graduate Payment Mortgage (GPM) with monthly payments and two annual step-ups of 10% each (one after the first 12 payments, and the other after the 24th payment). a. What is the initial monthly payment on this loan (prior to the first step-up)? b. What is the final monthly payment level (after the second step-up)

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