A borrower takes out a 30-year price level adjusted mortgage loan for $200,000 with monthly payments. The initial interest rate is 3% with 4 points. Assuming that inflation is expected to increase at the rate of 3% for the next 6 years, and a fully amortizing loan is made. What is the expected effective yield to the lender if the loan is repaid in 2 years? (Choose the nearest number)

Group of answer choices

10%

7%

9%

8%