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If market rates are 12 percent, what is the price of a $1 million, 12 percent mortgage loan for 30 years at which the effective

If market rates are 12 percent, what is the price of a $1 million, 12 percent mortgage loan for 30 years at which the effective yield equals the promised yield? a. $1 million b. $1.2 million

c. $1,117,014 d. $1,003,619 e. none of the above

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