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Assume that a borrower takes out a $400,000, 30-year mortgage, at a 3.5% annual nominal interest rate. Suppose that the market interest rate for the
Assume that a borrower takes out a $400,000, 30-year mortgage, at a 3.5% annual nominal interest rate. Suppose that the market interest rate for the mortgage above rises to 4.5%. What is the market value of the mortgage, assuming it is the start of month 61?
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