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THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Consider a 3-year old mortgage that originally had a face value of $200,000 over

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THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Consider a 3-year old mortgage that originally had a face value of $200,000 over a 20 -year amortization period, 5 -year contractual term, monthly payments rounded up to the next higher dollar, and interest at 7% per annum, compounded semi-annually. 18. Calculate the book value of this mortgage today. (1) $184,490.80 (2) $172,222.86 (3) $190,020.02 (4) $178,225.87 19. Calculate the market value of this mortgage if an investor purchases the remaining mortgage and wants to earn a yield of 5% per annum, compounded semi-annually. (1) $216,194.58 (2) $191,123.60 (3) $199,896.53 (4) $204,667.82

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