Please help with part A and B. Thank you!

Assume that a lender offers a 30 -year, $140,000 adjustable rate mortgage (ARM) with the following terms: Initial interest rate =7.5 percent Index = one-year Treasuries Payments reset each year Margin =2 percent Interest rate cap =1 percent annually; 3 percent lifetime Discount points =2 percent Fully amortizing; however, negative amortization allowed if interest rate caps reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of y (BOY) 2=7 percent; (BOY)3=8.5 percent; (BOY)4=9.5 percent; (BOY)5=11 percent. Required: a. Compute the payments and Ioan 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-year period. (Do not round intermediate calculations. Round "Payments" to 2 decimal places and "Loan Balance" to the nearest dollar amount.) Assume that a lender offers a 30 -year, $140,000 adjustable rate mortgage (ARM) with the following terms: Initial interest rate =7.5 percent Index = one-year Treasuries Payments reset each year Margin =2 percent Interest rate cap =1 percent annually; 3 percent lifetime Discount points =2 percent Fully amortizing; however, negative amortization allowed if interest rate caps reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of y (BOY) 2=7 percent; (BOY)3=8.5 percent; (BOY)4=9.5 percent; (BOY)5=11 percent. Required: a. Compute the payments and Ioan 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-year period. (Do not round intermediate calculations. Round "Payments" to 2 decimal places and "Loan Balance" to the nearest dollar amount.)