Consider a $100K, 15 year mortgage with 6.5% interest.

1. What is the Present Value of the stream of principal payments? What discount rate should be used to value this stream of cash flows?

2. What is the Present Value of the stream of interest payments? What discount rate should be used to value this stream of cash flows (remember that interest payments are tax deductible)?

(anything can help! just really want to know discount rate I should be using for each of them