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Consider a 20-year (monthly-payment), 8%, $80,000 mortgage with 2 points prepaid interest up front. What is the effective interest rate or yield over the borrowers

Consider a 20-year (monthly-payment), 8%, $80,000 mortgage with 2 points prepaid interest up front. What is the "effective interest rate" or yield over the borrowers expected holding period if the borrower expects to hold the loan for 12 years?

Question options:

	8.00%
	8.25%
	8.31%
	8.56%

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