Assume a lender offers a 30 -years ARM for $150,000 with following terms: - Initial interest rate =7.5 percent - Index =1 year Treasuries - Payments reset each year - Margin =2 percent - Interest rate cap =1% annually; 3 percent life time - Discount points =2 percent - Fully amortizing; however, 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 (BOY) 2=7%; (BOY) 3=8.5%; (BOY) 4=9.5%; (BOY) 5=11%. Compute the payments, loan balances, and yield for the ARM for the five-year period