Consider a 30-year fixed-rate mortgage of 100000 at a


Consider a 30-year fixed-rate mortgage of $100,000 at a nominal rate of 9%. What is the duration of the loan? If interest rates increase to 9.5% immediately after the mortgage is made, how much is the loan worth to the lender?

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Finance Basics: Consider a 30-year fixed-rate mortgage of 100000 at a
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