Chapter 18 Interest Rate Risk

There are 360 monthly mortgage payments (30 years x 12 months). Monthly mortgage payments are $75,000,000 = PVAn=360, k=0.6667%*R ( R = $550,323.43. c. For the first two payments, what portion is interest and what portion is principal repayment? For the first monthly payment, the monthly interest is 0.08/12 x $75 million = $500,000. ................
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