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you are making a 10-year balloon payment loan on a 20-year amortization schedule for $375,000 and the market interest is 7.5%. You think it is

you are making a 10-year balloon payment loan on a 20-year amortization schedule for $375,000 and the market interest is 7.5%.

You think it is a riskier than normal loan and want to include points so that the effective yield is 8.25%.

a)How many points should you charge?

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