You are interested in investing in a hotel property. The lender agrees to a 60 percent LTV loan, for 20 years at 8.25 percent interest; however, 1.5 discount points will also be necessary for you to obtain this loan. In addition, the lender will charge a prepayment penalty of 2 percent of the outstanding loan balance if the loan is prepaid within ten years. The hotel is up for sale for $115,000,000. a. What is the effective interest rate to you if you hold the loan until maturity? b. What is the effective interest rate to you if you prepay the loan after six years?