8. [10 marks] As part of the purchase of a home, you have just negotiated a $300,000 mortgage. The amortization period for calculation of the level monthly payments has been set at 25 years and interest rate is 7% per annum compounded semi-annually. The interest rate is guaranteed for 5 years. (a) Find the duration of this mortgage. (b) If the yield rises to 7.5% per annum compounded semi-annually, find the (exact) actual value of the mortgage. class. 8. [10 marks] As part of the purchase of a home, you have just negotiated a $300,000 mortgage. The amortization period for calculation of the level monthly payments has been set at 25 years and interest rate is 7% per annum compounded semi-annually. The interest rate is guaranteed for 5 years. (a) Find the duration of this mortgage. (b) If the yield rises to 7.5% per annum compounded semi-annually, find the (exact) actual value of the mortgage. class