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The interest rate for the first 5-year term of a $2,000,000 mortgage loan is 7.5% compounded semi-annually. The mortgage requires bi-weekly payments over a 25-year

The interest rate for the first 5-year term of a $2,000,000 mortgage loan is 7.5% compounded semi-annually. The mortgage requires bi-weekly payments over a 25-year amortization period. The mortgage contract gives the borrower the right to prepay up to 10% of the original mortgage loan.... once a year, without interest penalty. Suppose that, at the end of the second year of the mortgage, the borrower makes a prepayment of $250,000,

The equivalent bi-weekly interest should be ……………% ; The final payment of the loan is …………… Without prepayment; it will take ……… years to payoff the load with prepayment.

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