Question: Use this information to answer all questions: A borrower is faced with choosing between two FRM / CPM loans offered by a single lender. Loan
Use this information to answer all questions: A borrower is faced with choosing between two FRMCPM loans offered by a single lender. Loan A is available for $ at for years with in origination fees. Loan B would be made for the same amount but for interest for years with in origination fees. All loans are fully amortizing.Question : If either loan is to be repaid after years, what origination fee should the lender set on Loan A to ensure that Loan Aand Loan B generate the same lender's yield? Express your origination fee as a percent. FOR EXAMPLE if your answer is ENTER in the numerical box below.
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