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Consider a mortgage of $1,000,000. It has a 3.5% coupon paid monthly, maturity of 30 years,...

Consider a mortgage of $1,000,000. It has a 3.5% coupon paid monthly, maturity of 30 years, and a current price of 103.4375. What is the monthly yield of this mortgage? What is the bond equivalent yield? Show the formula used in calculating the yield.

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jeff jeffy answered 2 years ago
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