To pay for college you took out 1000 gov loan that makes


To pay for college you took out 1000 gov loan that makes you pay $126 per year for 25 years. However, you don’t make payments till graduation which is two years from now. Why is the YTM necessarily less than 12% (this is the yield to maturity on a normal 1000 fix payment loan in which you pay 126 per year for 25 years).

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Business Economics: To pay for college you took out 1000 gov loan that makes
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