The following question is worth 4 points. Given the follow…
The following question is worth 4 points. Given the following mortgage loan information, calculate the lender’s yield (IRR): loan amount: $175,000; loan term: 30 years; contract interest rate: 7 %; monthly payment: $1,164.28; up-front financing costs paid to the lender (including discount points): $3,000; up-front financing costs paid to third–party service providers (appraiser, attorney, etc.): $5,000. Assume the loan will be held/outstanding until the end of year 10. Chose the closet answer below.