Question: You are setting the points associated with a mortgage application from a borrower looking to purchase an investment property. The market interest rate for this

You are setting the points associated with a mortgage application from a borrower looking to purchase an investment property. The market interest rate for this type of loan is 4% with a 30-year term. The borrower is seeking $317,000 and you expect they will repay this loan over the full 30-year period. What is the dollar value of the points required for this loan to generate a yield of 4.5% for the bank?

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