a. The SHM requires a 5 percent down payment, costs the borrower 2 discount points, and allows 75 percent of the mortgage to be fixed and 25 percent to be adjustable. The fixed portion of the loan is for 30 years at an annual interest rate of 10.5 percent. Having neither an interest rate cap nor payment cap, the adjustable portion is also for 30 years with the following terms: Initial interest rate = 9 percent Index = 1-year Treasuries Payments adjust each year Margin = 2 percent Interest rate cap = None Payment cap = None The projected one-year U.S. Treasury-bill index, to which the ARM is tied, as follows BOY2 = 10 percent; BOY3 = 11 percent; BOY4 = 8 percent; BOY5 = 12 percent. Calculate Mrs. Perez's total monthly payments and end-of-year loan balances for the first five years. Calculate the lender's yield, assuming Mrs. Perez repays the loan after five years.