An investor obtained a fully amortizing mortgage 5 years ago for $95,000 at 11% for 30 years.Mortgage rates have dropped, so that a similar 25-year loan can be obtained at 10%.There is no prepayment penalty on the original loan but 3 points and a $2,000 loan fee are charged on the new loan at origination.

Based on Scenario 2 above, what is theyieldearned on the upfront refinancing costs if she plans to own the property for only 5 more years?

A. .25%

B. .60%

C. -1.64%

D. .98%

E. -1.23%