Please show your work using Excel to solve the following problems step by step. Homework that doesnt use Excel and doesnt show detailed work and uses formulas will not be graded.

1. Problem One (30 Points)

A mortgage banker is originating a level-payment mortgage with the following terms:

Annual interest rate: 9 percent Loan term: 15 years Payment Frequency: monthly Loan amount:$160,000 Total up-front financing costs (including discount points): $4,000 Discount points to lender: $2,000

a. Calculate the annual percentage rate (APR) for Truth-in-Lending purposes.

b. Calculate the lenders yield with no prepayment.

c. Calculate the lenders yield with a prepayment is five years.

d. Calculate the effective borrowing costs with prepayment in five years.