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Implementing and Operating Cisco Enterprise Network Core Technologies (ENCOR) · Cisco
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Tested in Cisco modeling labs. No issues at all! So, the C is correct.
Tunnel destination must be reachable via the physical interface, not through the tunnel itself.
yes, and both site are running OSPF on all interfaces (0.0.0.0 255.255.255.255) will advertised both public IP through Tunnel, so will do a flapping and cause an recursive route error