5. A mortgage banker is originating a level-payment mortgage with the following terms: Annual interest rate: 9.0 percent 15 years Loan term: Payment frequency: Loan amount: Total up-front financing costs (including discount points): Discount points to lender: Monthly $160,000 $4,000 $2,000 a. Calculate the annual percentage rate (APR) for Truth-in-Lending purposes. b. Calculate the lender's yield with no prepayment. 8. Suppose a one-year ARM loan has a margin of 2.75 percent, a teaser rate for the first year of 4.00 percent, and a cap of 1.00 percent. If the index rate is 3.00 percent at both the beginning and the end of the first year, what will be the interest rate on the loan in year 2? If there is more than one possible answer, what does the outcome depend on