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Five years ago, you took out a $2,000,000, 30-year mortgage, monthly payments at 8% interest, with no prepayment penalty. Suppose today you can get 30-year

Five years ago, you took out a $2,000,000, 30-year mortgage, monthly payments at 8% interest, with no prepayment penalty. Suppose today you can get 30-year mortgages at 6% with 2 points, and you plan to sell the property after five years. What would be the current opportunity cost of capital (OCC) or yield relevant for the refinancing decision?

8.00%

6.00%

9.00%

6.49%

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