11. In the fictional land of Westeros, House Lannister vies with rival Houses for control of the throne. War breaks out. To finance its war operations, House Lannister borrows 1,200,000 gold pieces from the Iron Bank. The loan is structured as a balloon mortgage with the following details: a term of 15 years, with amortization based on a 30-year loan with monthly payments. The Iron Bank offers the Lannisters a relatively low APR of 5% (monthly compounding) because a Lannister always repays his debt. (a). Determine the monthly loan payment, the EAR associated with the loan and the remaining principal that will be due in 15 years. (b). Complete the first two months of the loan amortization schedule for this loan. (c). Compute the interest paid in the first month of the 12th year of the loan. (d). Now suppose that the Iron Bank charges an origination fee equal to 1.5%, which is rolled into the loan value. This means that the Lannisters formally borrow 1,200,000 plus the fee amount but take home only 1,200,000 because the Iron Bank keeps the fee. Determine the new monthly loan payment and the EAR associated with the loan when this fee is incorporated.