1 a price level adjusted mortgage plam has the following, Ask an Expert

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1. A price level adjusted mortgage (PLAM) has the following terms: loan amount: $128,000, real interest rate: 5.50%, 30-year term, 2.50 discount points, annual payments adjustments, monthly payments, observed inflation end of year one (EOY1): -3%, observed inflation end of year two (EOY2): 4%. What is the monthly payment for the third year?

$716

$715

$705

$733

2. A secondary mortgage market is where existing mortgages are:

Bought.

Sold.

Distributed.

Bought and sold.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92082769

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