A5. (Effect of contracting costs on a lender) Frank Laatsch is considering a loan of $500 Regency Partners. Frank estimates that he will incur $15,000 of costs this loan a. Regency is promising to pay 12% annually on the loan. After paying monitor to per year to monit,or what rate of return is Frank receiving? b. Ifa fair rate ofreturn on this loan is 10%, what is the minimum interest rate that Frank will require on this loan? A6. (Claim dilutinn J1