Question 1 (10 points) Borrower Xi wishes to take a fixed rate CPM that will be fully amortized over 30 years through monthly payments. The mortgage interest rate is 11.50% with a 3.7000 (%) discount points and 5.4000% prepayment penalty. Given the mortgage loan amount, the monthly payment is $5,387.02. The lender expects borrower Xi to prepay the loan after five years. (a) Under the above terms, what is the All-In Cost (percent, rounded to two decimal places for the borrower? (b) Now suppose the lender wishes to reduce the All-In Cost for the borrower by 55 basis points (0.55%; 1% = 100 basis points). Holding other things the same, what prepayment penalty (percent, rounded to four decimal places, on loan balance outstanding at the time of prepayment) should the lender charge? [Round the monthly interest rates and IRR in decimal to six decimal places, the monthly payments to two decimal places, the loan balances, and disbursements to zero decimal places] [Do not copy and paste answers from Word, Excel, or pdf. Solve intuitively and show steps of solving. Otherwise no credit may be given)