You are choosing between two mortgage options for a $1,000,000 property.The first option is a 60% LTV mortgage at an interest rate of 7%.The payment on this mortgage is calculated as if it were a 30 year mortgage, but the mortgage balance is due in 10 years.This loan also charges a 1% origination fee.The second option consists of two loans combined together.The primary loan (first mortgage) is a 50% LTV loan at an interest rate of 6.5%.This loan is an Interest Only loan due in 10 years and the loan charges a 1% origination fee.The secondary loan for this option isa 10% LTV loan at an interest rate of 9%.This loan is fully amortizing and is also due in 10 years and charges a 2% origination fee.What is the effective rate of the second option over 10 years?

Answer choices

A: 6.954%

B:8.2415%

C: 7.1593%

D:7.8243%