1. A lender wants an EY of 4.00% and expects an average loan payoff in 7 years. However, a particular borrower wants to borrow $400,000 for 30 years at 3.20%, compounded monthly. First, without charging a prepayment penalty, how many discount points must the lender charge to have an EY of 4%. Assume no other fees to close the loan other than discount points. Second, without charging discount points, how much of a prepayment penalty (in terms of dollars) will the lender need to charge to have an EY of 4%. 2. Choose a city or county area in the U.S. and make an evaluation/analysis of your chosen area's current housing market. See the lecture on Current Housing Market Evaluation for Palm Beach County as a sample of the type work expected. (Note you cannot analysis the Palm Beach, Broward, or Miami Dade housing markets.) 3. In class, we discussed how longer-term loans are inferior to shorter-term loans. Develop an example and explain the concept