An ARM is made for $150,000 for 30 years with the following terms: Initial interest rate =7 percent Index = 1-year Treasurles Payments reset each year Margin =2 percent Interest rate cop= None Payment cap =5 percent increase in any year Discount points =2 percent Fully amortizing; howevec, negative amortization allowed if payment cap reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year ( 80n2=7 percent: (BOY) 3=8.5 percent; (BOY) 4=9.5 percent; (BOY) 5=11 percent. Required: a. Compute the payments and loan balances for the ARM for the five-year period. b. Compute the yield for the 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 ARM for the five-vear period. (Do not round intermediate calculations Round 'Pavments' to 2 decimal places and 'Loan Balanch' to the nearest doltar amounc)