Question: 1. Consider a fixed rate or constant payment (FRM or CPM) mortgage loan that carries a mortgage interest rate of 6.5%. What is the

1. Consider a fixed rate or constant payment (FRM or CPM) mortgage loan that carries a mortgage interest rate of 6.5%. What is the effective annual rate (EAR)? What is the equivalent monthly rate that would be used in the annuity math calculation to compute the monthly loan payment?

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