QUESTION 2 Question 2: An ARM for $300,000 is made at a time when the expected start rate is 5 percent. The loan will be made with a teaser rate of 2 percent for the first year, after which the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and payments will be made monthly. a. What will be the payments during the first year? b. Assuming that the reset rate is 6 percent at the beginning of year (BOY) 2, what will payments be? c. What if the reset date is three years after loan origination and the reset rate is 6 percent, what will loan payments be beginning in year 4 through year 25