The bank issued a $101,000, 25-year mortgage (monthly payments) with an annual interest rate of 9.20%. They just received payment number 107 and have decided to sell the loan. The buyer of the loan expects to receive an annual rate of return equal to 10.50%. For the original bank that issued the loan, what was the internal rate of return? (NO EXCEL)

Question 1 options:

8.69%

10.85%

11.93%

8.97%

9.05%