Question: Answer the Question below with your own words - With Explanation please Consider a 10-year, fixed-rate mortgage for $100,000 at a nominal rate of 6%.

Answer the Question below with your own words - With Explanation please

  1. Consider a 10-year, fixed-rate mortgage for $100,000 at a nominal rate of 6%. What is the duration of the loan? If interest rates increase to 7% immediately after the mortgage is made, how much is the loan worth to the lender?

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