A bank has a 20-year mortgage loan that pays a 3.5% coupon in its loan portfolio with a principal value of $250,486.20.   Using this information you should be able to calculate the mortgage's cash flows over the next 20 years (assuming 0 prepayment) in order to determine what the price of the loan is if the current yield to maturity is 5.5%. Round your answer to the nearest dollar.

Answer rating: 100% (QA)

To calculate the price of the loan we need to discount its cas... View the full answer