Today, the Last Bank of Nottawa issues you an interest-only mortgage, priced to par, with an initial balance of $1,400,000.00, a term to maturity of five years, and an annual coupon rate of 8.4%. With your imminent promotion to the position of senior financial analyst at BMO, the bank treats your loan as riskless. We can immediately injer that: assuming that market interest rates correspond to compounded values of a constant Initial monthly rate equal to the monthly coupon rate on this mortgage, the current market value of this mortgage is $208,000,000 assuming that the annualized values, on a compound basis of all future monthly market inter est rates are constant at an annual value of 6.5% the current market value of your mortage is $995, 681.20 monthly coupon payments on this mortgage would be $9,632.78 a current six-month net market interest rate of .08% implies the current value of your six month coupon payment on this mortgage is $8194.16. none of the above