1. A borrower is looking to finance 90% of the purchase on a house he is buying. His lender proposes a two-loan package financing as the follows. 1^st mortgage: 80% LTV, 25 yr, 5%. 2^nd mortgage: 10% LTV, 25 yr, 9%. But the borrower insists to have one 90% LTV (loan-to-value) mortgage. What should the interest rate be on the 90% loan so that the lender will receive some yield regardless which option the borrower chooses? A. 5.48% B. 5.12% C. 6.42% D. 6.69%