5. On Friday, October 30, 1981, 30-year fixed mortgage rates in the United States peaked at 18.44% (for real.) a. Assume that you wanted to buy a house then for $200,000. What would your monthly payment be? b. Today, comparable rates are at roughly 3.75%. What would be the monthly payment at 3.75% be? c. In the first year, how much interest and would you have paid using the 1981 rates? How much principal would you have paid? d. How much interest would you pay using today's rates in the first year? How much principal would you pay? 6. A year ago a bank issued a 30 year mortgage at 3% with an initial balance of $300,000. Today market interest rates are 4%. a. What would be the current price of the mortgage in the marketplace? b. How much has the bank's wealth changed because of the change in this mortgage's value? c. How much has the borrower's wealth changed? (You may assume the house value is unchanged.)