Use the information provided below for questions 24-26

A mortgage banker is originating a level-payment mortgage with the following terms: Annual interest rate: 9 percent

Loan term: 15 years

Payment frequency: monthly

Loan amount: $160,000

Third party costs: $2,000

Discount points to lender: $2,000

Calculate the lender's yield with no prepayment. (Round your answer to two decimal places. If the IRR is 7.25%, report it as 7.25.)

Your Answer:

Calculate the lender's yield with prepayment at the end of year five. (Round your answer to two decimal places. If the IRR is 7.25%, report it as 7.25.)

Your Answer:

Calculate the effective borrowing cost with prepayment at the end of year five. (Round your answer to two decimal places. If the IRR is 7.25%, report it as 7.25.)

Your Answer: