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2. A couple takes out a fully amortizing fixed rate 30-year loan for $470,000. The couple makes monthly payments and the annual interest rate on

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2. A couple takes out a fully amortizing fixed rate 30-year loan for $470,000. The couple makes monthly payments and the annual interest rate on the loan is 4.0%. The couple also pays 2.5 points in up-front fees to obtain the loan. (a) Calculate the loan's APR [7 points) (b) Assuming a holding period of 9 years, calculate the loan's EBC (7 points)

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