Question 6 On January 15, a borrower takes-out a 5/1 ARM for 20 years bearing initial APR of 5.5%. Thereafter, during the loan's adjustable period, interest will be 2.5% over CPI, adjusting annually. (a) How does this 5/1 ARM protect the lender from risk? (3 points) (b) If the CPI on January 1" is 6%, what is the interest rate during the loan's first year? (3 points) (C) If the borrower was also offered a 10/1 ARM (as an alternative to the 5/1 ARM), how would the margin of the 10/1 ARM likely differ from the margin of the 5/1 ARM? (3 points)