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The correct choice in this scenario is the yield spread premium. When a broker negotiates a higher interest rate than what the lender initially offers, the lender compensates the broker with a yield spread premium. This premium is essentially a payment made to the broker for helping to secure a higher rate for the borrower than that of the market rate, which can be beneficial for both the lender and the broker.

The yield spread premium is often calculated as a percentage of the loan amount and reflects the difference between the lower rate the lender was willing to offer and the higher rate the borrower agrees to pay. This arrangement encourages brokers to find borrowers willing to accept slightly higher interest rates, which can help lenders profit while providing brokers with additional income.

Other options like a wholesale rate, flat fee, or commission represent different types of payment structures in loan brokerage but do not specifically pertain to the scenario of negotiating a higher interest rate. The wholesale rate refers to the cost lenders use to give brokers loans, a flat fee would be a fixed amount paid regardless of loan performance, and commission typically relates to earnings based on sales performance but does not capture the nuanced relationship between interest rate negotiation and broker compensation in the context described.