A5500,000, 25-year adjustable rate loan (ARM) has its interest rate indexed to the 10-year Treasury bond, The loan has a margin of 2.25%, first-year teaser rate of 1.75%, an annual rate cap of 1% and a lifetime rate cap of 5%. 10-year Treasury bond is projected to yield 2.5% at the loan's first anniversary date for the first rate adjustment. a) Calculate the first-year monthly loan payment based on the teaser rate and the loan balance at the end of this first year? (5 pt) b) What is the contract rate for the second year? (3 pt) c) What is the payment amount during the second year and the loan balance at the end of the year? (9 pt.) A5500,000, 25-year adjustable rate loan (ARM) has its interest rate indexed to the 10-year Treasury bond, The loan has a margin of 2.25%, first-year teaser rate of 1.75%, an annual rate cap of 1% and a lifetime rate cap of 5%. 10-year Treasury bond is projected to yield 2.5% at the loan's first anniversary date for the first rate adjustment. a) Calculate the first-year monthly loan payment based on the teaser rate and the loan balance at the end of this first year? (5 pt) b) What is the contract rate for the second year? (3 pt) c) What is the payment amount during the second year and the loan balance at the end of the year? (9 pt.)