Ouestion 1 (20 marks) Rosemary, single and age 28, plans to purchase a residential flat as her new residence for self-use. She has a stable full-time job with a monthly gross income of $45,000. Currently, she is required to make a monthly payment of $3,800 for her car loan for the next 4 years. After considering the asset values of her deposits and investments, Rosemary could afford to pay $2.4 million as down payment. The mortgage plan provided by Kenon Bank is H+1.2%, cap at P1.38%, repayable in 30 years. The current one-month HIBOR and Prime rate are 2.58% and 5.13%, respectively. The latest countercyclical measures for all self-use residential properties are: - The maximum loan-to-value (LTV) ratio is 80\% - The maximum debt-servicing ratio (DSR) is 40%, and its corresponding stressed-DSR is 50% (assuming an increase of the mortgage rate by 250 basis points) REOUIRED a) Determine the mortgage rate offered by Kenon Bank. Shows your workings. (4 marks) b) Based on your answer in part (a) and the mortgage plan provided by the bank, calculate the maximum loan amounts that Rosemary can borrow under the LTV ratio, the DSR and the stressed-DSR requirements separately. Shows your workings. (8 marks) c) Based on your answer in part (b), what is the maximum loan amount that Rosemary can borrow which can satisfy the LTV ratio, the DSR and the stressed-DSR requirements? (2 marks) d) Based on your answer in part (c), calculate the maximum price (appraisal value) of the property that Rosemary can afford. What is the monthly payment of the loan she must pay? Show your workings. (6 marks)