1. Consider a 20-year (monthly-payment), 8%, $80,000 mortgage with 2 points prepaid interest up front. What is the yield to maturity?
8.00%
8.12%
8.20%
8.27%
2. Suppose the market yield on mortgages is 9.2% in bond equivalent terms (BEY, or "coupon equivalent", CEY). What is the effective yield (EAY or EAR)?
9.41%
9.52%
9.30%
9.20%