2. A 5/1 hybrid ARM is made for $250,000 at 8% with a 30 year maturity. A 5/1 hybrid ARM is a FRM for the first five years, and becomes an ARM afterward. a. Assuming that fixed payments are to be made monthly for three years and that the loan is fully amortizing, what would be the monthly payments? What will be the loan balance after three years? b. What would new payments be beginning in year 6 if the interest rate on the mortgage fell to 6% and the loan continued be fully amortizing? c. In (a), what would monthly payments be during year 1 if they were interest-only? What would payments be beginning in year 6 if interest rates fell to 6% and the loan became fully amortizing? (An interest-only mortgage is a mortgage contract for which monthly payments are set to be equal to interest payments only without amortization.)