Yield to lender (ARM). A 200,000 ARM loan with 1.5 points is granted a borrower. Year 1 PMT= 1,000, Year 2 PMT= 1,050, Year 3 PMT= 950. The balance after 3 years (when the loan is paid off) is $190,000. The yield to lender is:

5.00

5.18

5.23

5.31

5.50

5.87