Suppose that a 15-year mortgage loan for $200,000 is obtained. The mortgage is a level-payment, fixed-rate, fully amortized mortgage and the mortgage rate is 7.0% (APR, monthly).
a. Find the monthly mortgage payment.
b. Compute an amortization schedule for the first six months.
c. What will the mortgage balance be at the end of the 15th year?
d. If an investor purchased this mortgage, what will the timing of the cash flow be assuming that the borrower does not default?