A bank issues a $100,000 variable-rate 30-year mortgage with a nominal annual rate of 4.5%. If the

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A bank issues a $100,000 variable-rate 30-year mortgage with a nominal annual rate of 4.5%. If the required rate drops to 4.0% after the first six months, what is the impact on the interest income for the first 12 months?

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Question Posted: Nov 12, 2012 01:14 AM

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A bank issues a $100,000 variable-rate 30-year mortgage with a nominal annual rate of 4.5%. If the

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At 45 the required payment is calculated as PV 100000 I 4512 N 360 FV 0 Compute PMT PMT 506685 If ra...View the full answer

Financial Markets And Institutions

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