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Please show the written steps and calculations. NCP bank extend a $400,000,20-year mortgage at 5%. The interest rate increases to 6% soon after origination. Suppose
Please show the written steps and calculations.
NCP bank extend a $400,000,20-year mortgage at 5%. The interest rate increases to 6% soon after origination. Suppose the loan is expected to be prepaid in 9 years. What is the loss (interest rate risk) to the bank from the mortgage? ( 2 points) Step by Step Solution
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