Question: Annual percentage rate ( APR ) differs from effective borrowing cost ( EBC ) because: 1 . APR is strictly a rate of return to

Annual percentage rate (APR) differs from effective borrowing cost (EBC) because:
1. APR is strictly a rate of return to maturity while EBC is not.
2. EBC is strictly a rate of return to maturity while APR is not
3. APR accounts for additional up-front expenses to third parties while EBC does not
4. EBC accounts for additional up-front expenses to third parties while APR does not
5. None of the above

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