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Check my w Initial Interest rate = 7 percent Index = 1-year Treasures Payments reset...

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Check my w Initial Interest rate = 7 percent Index = 1-year Treasures Payments reset each year Margin = 2 percent Interest rate cap = None Payment cap = 5 percent increase in any year Discount points=2 percent Fully amortizing: however negative amortization allowed if payment cap reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BOY 2 = 7 percent; (BOY 3 = 8.5 percent (BOY) 4 = 9.5 percent: (BOY 5 = 11 percent. Required: a. Compute the payments and loan balances for the ARM for the five-year period. b. Compute the yleid for the ARM for the five year period. Complete this question by entering your answers in the tabs below. Required A Required B Compute the payments and loan balances for the ARM for the five-year period. (Do not round Intermediate calculations Round "Payments" to 2 decimal places and "Loan Balance" to the nearest dollar amount.) Payments Loan Balance Year 1 Year 2 10 of 10 Next

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