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A lender has offered you either a $400,000 10-year interest-only FRM loan at 4.56% or a $450,000 10-year interest-only FRM loan at 4.92%. Both loans

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A lender has offered you either a $400,000 10-year interest-only FRM loan at 4.56% or a $450,000 10-year interest-only FRM loan at 4.92%. Both loans have $10,000 in origination fees and annual payments. What is the incremental borrowing cost (IBC) of the two loan options if you do not intend to prepay either loan? Please represent your answer as a percent with 2 decimals lie, 0.0346 as 3.46)

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