1. Use the Mortgage Valuation file to create a mortgage with the following data: 30 years 3% interest rate $500,000 loan amount

2. Use the following to determine how many points you will take: 0 pts - 3% 1 pts - 2.7% 2 pts - 2.6% 3 pts - 2.45%

3. Calculate the APR (YTM) with the points you chose as if you were to hd the loan the entire 30 years.

4. Calculate the EBC (YTM) with the points you chose and as if you paid the loan off after 7 years.

You must show the calculations we covered in the Excel file from class and explain your answer to #2.