You are a borrower. and take a $$500,000$ fixed $-$rate. $15-$year fully$-$amortizing loan with monthly payments. The lender lowers your interest rate to $5\mathrm{.}00\%$ annually due to you paying $2$ discount points $(2\%)$ of the full loan amount, which come out to a cost of $$10,000$ in points. You will pay no other up$-$front fees directly to the lender; however, the lender requires you to pay for an appraisal $($paid to an appraisal company$)$ of $$1,000.$ They also require that you pay for the lender's title insurance $($paid to a title insurance

company$)$ of $$3,000.$

If you pay back the loan at the end of the third year $($with no prepayment penalty$)$:

$1)$ What is the lender's yield?

$2)$ What is your effective borrowing cost $($EBC$)?$

Question $9$ options:

$1)5\mathrm{.}78\%$

$2)6\mathrm{.}10\%$

$1)7\mathrm{.}74\%$

$2)5\mathrm{.}00\%$

$1)6\mathrm{.}11\%$

$2)6\mathrm{.}73\%$

$1)5\mathrm{.}00\%$

$2)7\mathrm{.}00\%$