Assume that the lender is offering a $460,000, 30-year fully amortizing ARM at 2.00% margin (200 basis points) over the 1-Year Treasury Rate and 2.0000 (discount) points. The initial mortgage interest rate is fixed at 4.70% for the first year, the adjustment period is one year, and there is a cap of 11.50% increase in monthly payment in any year. The current (BOY1) 1-year Treasury Rate is 5.00%, and the expected 1-Year Treasury Rate one year from now is 6.16% (BOY 2). Loan terms dictate that interest will accrue according to the pertinent composite or market rate and any teaser rate or payment cap related shortfall will be treated in the manner of negative amortization. There is a 3.52% prepayment penalty on the balance due at the time of prepayment. The lender expects the borrower to prepay at the end of two years (end of Month 24). (a) What is the All-In or Effective Yield, % (rounded to two decimal places) for the lender? (b) Now suppose that the lender requires All-in or Effective Yield of 10.83%. (i) What discount points (% rounded to four decimal places) should the lender charge, other things including the prepayment penalty remaining the same as above? (ii) Alternatively (i.e., not cumulative over changing the discount points), what prepayment penalty (%, rounded to four decimal places) should the lender charge?