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A bank has a 20-year mortgage loan that pays a 3.5% coupon in its loan portfolio with a principal value of $250,486.20. Using this information
A bank has a 20-year mortgage loan that pays a 3.5% coupon in its loan portfolio with a principal value of $250,486.20. Using this information you should be able to calculate the mortgage's cash flows over the next 20 years (assuming 0 prepayment) in order to determine what the price of the loan is if the current yield to maturity is 5.5%. Round your answer to the nearest dollar.
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