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A couple takes out a fully amortizing fixed rate thirty-year loan for $375,000. The couple makes...

A couple takes out a fully amortizing fixed rate thirty-year loan for $375,000. The couple makes monthly payments and the annual interest rate on the loan is 4.5%. The couple also pays 3 points in up- front fees to obtain the loan. (a) Calculate the loan’s APR [8 points] (b) Assuming a holding period of 12 years, calculate the loan’s EBC

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