1. Calculate the bank’s yield under the following set of assumptions: i. $1,150,000 loan amount ii. Interest rate of 5.25% iii. 20 year amortization iv. Expected repayment after 73 months v. -0.2 (...

1. Calculate the bank’s yield under the following set of assumptions:

i. $1,150,000 loan amount

ii. Interest rate of 5.25%

iii. 20 year amortization

iv. Expected repayment after 73 months

v. -0.2 (negative
two tenths) points charged at origination

vi. Prepayment penalty based on a 7-7-6-6-5-4-2-2 schedule