A borrower has been analyzing different adjustable rate mortgage (ARM) alternatives for the purchase of a property. The borrower anticipates owning the property for five years. The lender first offers a $141,000, 30-year fully amortizing ARM with the following terms: Initial Interest rate 6 percent Index 1-year Treasuries Payments reset each year Margin 2 percent Interest rate cap - None Payment cap None Negative amortization Not allowed Discount points 2 percent Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BOX) 2 =7 percent (BOY) 3 8.5 percent (BOY) 4 9.5 percent (BOY) 5-11 percent. Required: a. Compute the payments and loan balances for the unrestricted ARM for the five-year period. b. Compute the yield for the unrestricted ARM for the five-year period.