An ARM is made for $150,000 for 30 years with the following terms: i. Initial interest rate: 7.0 percent ii. Index : one-year Treasuries iii. Payments reset each year iv. Margin : 2 percent v. Interest rate cap : None vi. Payment cap: 5 percent increase in any year vii.Discount points : 2 percent viii. Fully amortizing however, negative amortization allowed if interest rate caps reached Based on estimated forward rates the index to which the ARM is tied, is forecasted as follows: Beginning of year (BOY) 2=7 percent; (BOY) 3=8.5 percent; (BOY) 4=9.5 percent; (BOY) 5=11 percent. a. Compute the payments, loan balances and yield for the ARM for the five-year period. b. Compute the payments, loan balances, and yield for an ARM that has a maximum 5% annual payment cap and allows negative amortization