72 bints A borrower has been analyzing different adjustable rate mortgage (ARM) alternatives for the purchase of a property. The borrower anticipates owning the property for five years. The lender first offers a $160,000, 30-year fully amortising ARM with the following terms Initial Interest rate - 6 percent Index - 1-year Treasures Payments reset each year Margin-2 percent Interest rate cap None Payment cap = None Negative amortization - Not allowed Discount points - 2 percent Based on estimated forward rates, the Indek to which the ARM is tied is forecasted as follows: Beginning of year (BOY 29 percent (BOY 3 - 10.5 percent (807 4 - 11.5 percent:(045 - 13 percent Required: a. Compute the payments and loan balances for the unrestricted ARM for the five-year period b. Compute the yield for the unrestricted ARM for the five-year period Complete this question by entering your answers in the tabs below. Req A Reg B Year Compute the payments and loan balances for the unrestricted 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 $ 899.33 $ 1 148,1583 Year 2 $ 1,200.31 147,043 Year 3 1,359.42 $ 146.126 4 $ 1,467.12 $ 145,282 Year 5 1,630 42 s 144,562 en Year $