A bank makes 4, monthly payments. What is the market value of this loan after 7 years of payments if the annual interest rate for this loan is 10% compounded monthly? a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4% compounded monthly, with 5. A bank makes a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 4% compounded monthly, with monthly payments. Suppose inflation is 2% per year, compounded monthly. What is the real value of the 20th payment? 6. A 30 year 1 /1 ARM has an initial rate of 7.85%. In the future the rate will reset to 225 basis points above the LIBOR index with no rate caps or floors. In 1 year, at the time of the first reset, the LIBOR is 1%, what interest rate will be used to compute payments at the first reset? 7. Ann gets a 30 year 1/1 Fully Amortizing ARM for $1,000,000, with monthly payments and monthly compounding. The initial rate is 3%. In the future, the rate will reset to 250 basis points above the LIBOR. There are no rate caps or floors. Suppose at the first reset, the LIBOR was 6%. what is the monthly mortgage paymentfor the second vear