Consider a -year monthly-payment mortgage with points prepaid interest

Question

Consider a 30-year (monthly-payment), 6%, $300,000 mortgage with 3 points prepaid interest up front. What is the yield to maturity?
a) 5.87%
b) 6.00%
c) 6.29%
d) 6.50%
e) Insufficient information to answer the question.

Answer

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