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A borrower has been analyzing ditferent adjustable rate mortgage (ARM) alternatives for the purchase of a property. The borrower anticipates owning the property for five

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A borrower has been analyzing ditferent 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 $140,000,30-year fully amortizing ARM with the following terms: Initial interest rate =6 percent Index =1-year Treasuries 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 index to which the ARM is tied is forecasted as follows: Beginning of year (BOY2=9 percent; (BOY) 3=10.5 percent: (BOY)4=11.5 percent; (BOY) 5=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. 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.) 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 $140,000,30-yoar fully amortizing ARM with the following terms: Initial interest rate =6 percent Index =1-year Treasuries 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 index to which the ARM is tied is forecasted as follows: Beginning of year (80)2=9 percent; (BON) 3=10.5 percent; (BOY) 4=11.5 percent: (BON 5=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. Compute the yield for the unrestricted ARM for the five-year period. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) A borrower has been analyzing ditferent 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 $140,000,30-year fully amortizing ARM with the following terms: Initial interest rate =6 percent Index =1-year Treasuries 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 index to which the ARM is tied is forecasted as follows: Beginning of year (BOY2=9 percent; (BOY) 3=10.5 percent: (BOY)4=11.5 percent; (BOY) 5=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. 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.) 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 $140,000,30-yoar fully amortizing ARM with the following terms: Initial interest rate =6 percent Index =1-year Treasuries 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 index to which the ARM is tied is forecasted as follows: Beginning of year (80)2=9 percent; (BON) 3=10.5 percent; (BOY) 4=11.5 percent: (BON 5=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. Compute the yield for the unrestricted ARM for the five-year period. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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