Suppose, a homeowner borrows $100,000 on a mortgage loan, and the loan is to be repaid with equal monthly payments over a 25-year period. The lender charges 6%, compounded semi-annually. The mortgage term is 5 years fixed. If the homeowner borrows $200,000 on the mortgage loan, what will be effective monthly rate (EFF%m)?

Question 7 options:

0.0059%

0.51%

0.0049%

0.49%