A lender is offering a 30-year, monthly payment fixed rate mortgage (FRM) loan at 4.5% with an $800 origination fee and 2.5 discount points. A borrower wants a loan for $358,000. What is the yield to the lender, the effective borrowing cost to the borrower, and the APR assuming the loan is held to maturity? Use both the IRR and RATE functions in the green highlighted cells as indicated.

Please show excel functions

3 1. Origination Fees and Discount Points without Prepayment 4 5 A lender is offering a 30-year, monthly payment fixed rate mortgage (FRM) loan at 4.5% with an $800 origination fee 5 and 2.5 discount points. A borrower wants a loan for $358,000. What is the yield to the lender, the effective 7 borrowing cost to the borrower, and the APR assuming the loan is held to maturity? Use both the IRR and RATE 8 functions in the green highlighted cells as indicated. 9 0 1 Loan Amount $358,000.00 Using IRR Function 2 Annual Interest Rate Yield to Lender 3 Origination Fee Effective borrowing cost to borrower 4 Discount Points % APR 5 Maturity (in years) 6 Periods per year Using RATE Function 7 Yield to Lender 8 Effective borrowing cost to borrower Month Cash Flow APR 0 oo a om 2 3 4 5 6 17 8 9 0 1 1 2 3 4 5 6 7 8 9 10 11