Bob buys a house for 150,000 with a mortgage rate of 5.8%
Bob buys a house for 150,000 with a mortgage rate of 5.8%
Bob buys a house for 150,000 with a mortgage rate of 5.8% convertible monthly. At the time ofpurchase he owns a 10,000 20-year zero coupon bond that earns 4.5% annually. The bondmatures in 15 yeas. He would like to use the proceeds from the bond to make a payment largerthan the usual fixed rate payment and pay off the balance of the mortgage after the 180thpayment. How much should his monthly payments be?
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