Must Show your work You are borrowing $490,000 for 30 years to finance the purchase of a home. You are considering 1/1 ARM meaning a yearly reset after the first year; The ARM has the 2/8 quote; 2 percent yearly cap and an 8 percent lifetime cap. ARM indexed to the 1-year Treasury security with a 3.5 percent margin. The initial interest rate on this loan is 4 percent. a. What is the initial payment on this mortgage? b. If the 1-year Treasury security yield is 0.75 percent at the first adjustment date, what is your payment on this loan during the second year? Must Show your work You are borrowing $490,000 for 30 years to finance the purchase of a home. You are considering 1/1 ARM meaning a yearly reset after the first year; The ARM has the 2/8 quote; 2 percent yearly cap and an 8 percent lifetime cap. ARM indexed to the 1-year Treasury security with a 3.5 percent margin. The initial interest rate on this loan is 4 percent. a. What is the initial payment on this mortgage? b. If the 1-year Treasury security yield is 0.75 percent at the first adjustment date, what is your payment on this loan during the second year