A homeowner purchases a property for $1,000,000. She puts down 30% of the purchase price, and finances the rest with a 30 -year, fully amortizing, graduated payment mortgage (GPM) carrying a 12% interest rate. The fees are 3% plus $20,000 and are financed. A 25% rate of graduation will be applied to monthly payments beginning year 4 and the beginning of year 7 , only (so, fixed for two three-year periods and then fixed for all years 7 , 8,9,). She will sell the home at the end of year 10. What is the effective cost of borrowing for the loan? Hint: this is GPM, do not amortize as if it were a level payment mortgage. To compute the OLB in year 10, find the PV of the remaining 20 years of payments after the second adjustment. The ECB is the IRR of realized CFs