Question $14$

$3\mathrm{.}3pts$

A commercial borrower has a $$12,000,000$ interest$-$only mortgage at $8\%$ interest rate for $15$ year. There is a lockout period of $10$ years for the loan. The mortgage has a prepayment penalty if the borrower prepay.

Assuming the loan is prepaid at the end of year $12$ and the mortgage interest rate at that time is $9\%.$ How much is prepayment penalty, if the lender will charge a yield maintenance penalty.

$$200,000$

$$176,522$

$$181,534$

$$0$