Question: Consider a $ 5 , 0 0 0 , 0 0 0 , 8 . 5 % APR, 3 0 - year mortgage with monthly

Consider a $5,000,000,8.5% APR, 30-year mortgage with monthly payments, and expected realistic prepayment horizon of 7 years. What is the contractual yield (effective interest rate) at issuance over the expected life of the loan under the following circumstances:
Please answer using excel
No points or penalties
One point of discount
Three points of discount
Three points of discount plus one point of prepayment penalty.

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