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You are investing in a strip shopping center at a price of $7,500,000. A 60% loan is available at 7% interest over 17 years, with

You are investing in a strip shopping center at a price of $7,500,000. A 60% loan is available at 7% interest over 17 years, with a 7 year call. Origination fees will total 3%, which you will pay up front. the lender will keep half the fees.

What is you cost of debt (APR)? What is the lenders expected yield (IRR)?

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