Lender’s yield differs from effective borrowing cost (EBC) because:
A.
Lender’s yield is strictly a yield to loan maturity and EBC is not.
B.
EBC is strictly a yield to maturity and lender’s yield is not.
C.
EBC accounts for additional third-party up-front expenses paid by the borrower that lender’s yield does not account for.
D.
Lender’s yield accounts for additional third-party upfront expenses that EBC does not.