can you please solve this question using the excel sheet

S QR T U V G CD MN H 3b EIR 3d EIR Term EIR Amount Balloon Prepay Penalty Rate Points Ja Rate Index Cash flows Cash flows Cash flows Year 1 2 3 Bee balance Payment Interest Principal End balance 4 0 1 2 3 4 5 5 6 7 8 9 10 5.00% 5.75% 6.25% 6.75% 4.00% 4.SON 5.25% 8 9 10 I! 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 22 2 29 30 31 32 01 Q2 03 + Ready Question 3 Adjustable Rate Mortgage [40 points) - Create an amortization spreadsheet and answer the following questions for a $750,000 10-year 3/1 ARM loan that is fully-amortizing with monthly payments. The loan terms include a teaser rate of 1.5%. After the initial teaser rate period, the interest rate resets annually to the index rate plus a margin of 1.75%. The loan terms also include an annual interest rate cap of 2.0% and a lifetime interest rate cap of 6.0% over the initial teaser rate. Expectations for the beginning-of-year values for the appropriate index are as follows: Year 1 2 3 4 5 Index 4.00% 4.50% 5.00% 5.00% 5.75% 6.25% 6.75% 4.00% 4.50% 5.25% 6 7 8 9 10 a.) Calculate the appropriate contract rate for years 1 - 10 and then complete the amortization schedule. b.) What is the effective interest rate (EIR) for the loan if it is held to maturity (assume no upfront fees/points or prepayment penalties)? c.) Assuming upfront points of 2.0%, what is the loan's EIR if it is held until maturity? d.) Assuming upfront points of 2.0%, what is the loan's EIR if it is prepaid at the end of year 7 (assume no prepayment penalties)? S QR T U V G CD MN H 3b EIR 3d EIR Term EIR Amount Balloon Prepay Penalty Rate Points Ja Rate Index Cash flows Cash flows Cash flows Year 1 2 3 Bee balance Payment Interest Principal End balance 4 0 1 2 3 4 5 5 6 7 8 9 10 5.00% 5.75% 6.25% 6.75% 4.00% 4.SON 5.25% 8 9 10 I! 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 22 2 29 30 31 32 01 Q2 03 + Ready Question 3 Adjustable Rate Mortgage [40 points) - Create an amortization spreadsheet and answer the following questions for a $750,000 10-year 3/1 ARM loan that is fully-amortizing with monthly payments. The loan terms include a teaser rate of 1.5%. After the initial teaser rate period, the interest rate resets annually to the index rate plus a margin of 1.75%. The loan terms also include an annual interest rate cap of 2.0% and a lifetime interest rate cap of 6.0% over the initial teaser rate. Expectations for the beginning-of-year values for the appropriate index are as follows: Year 1 2 3 4 5 Index 4.00% 4.50% 5.00% 5.00% 5.75% 6.25% 6.75% 4.00% 4.50% 5.25% 6 7 8 9 10 a.) Calculate the appropriate contract rate for years 1 - 10 and then complete the amortization schedule. b.) What is the effective interest rate (EIR) for the loan if it is held to maturity (assume no upfront fees/points or prepayment penalties)? c.) Assuming upfront points of 2.0%, what is the loan's EIR if it is held until maturity? d.) Assuming upfront points of 2.0%, what is the loan's EIR if it is prepaid at the end of year 7 (assume no prepayment penalties)