Question: - Consider a 1 0 - year, fixed - rate mortgage for $ 1 0 0 , 0 0 0 at a nominal rate of

- 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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