An ARM is made for $300.000 for 30 years with the following terms. Discount Points = = 2 Index = 1-year Treasuries Initial Interest Rate= 5.0% Payment cap = 5% increase in any year Interest rate cap = None Payments are to be reset each year Fully amortizing, however, negative amortization is allowed if payment cap reached. Margin = 2% Based on estimated forward rates, the index to which the ARM is tied was forecasted as follows: Beginning of year(BOY)2= 6%, (BOY)3= 7%. Compute the monthly payments and loan balances for each year over the next three years, and the expected yield to the lender if the ARM loan is repaid after three years. (Round final answers to 2 decimals) 6 (1) BOY Balance Year (2) Uncapped Rate (3) Monthly Payment Uncapped EOY Balance (4) Monthly Payments Capped (5) FV of Capped PMT 1 2 3 What is the loan balance at the end of year 3