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A bank issues a $150,000 fixed-rate, 35-year mortgage with a nominal annual rate of 5.5%. If the required rate drops to 5.0% immediately after the

A bank issues a $150,000 fixed-rate, 35-year mortgage with a nominal annual rate of 5.5%. If the required rate drops to 5.0% immediately after the mortgage is issued, what is the impact on the value of the mortgage?

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