Hello, I have a question on a homework problem for my Real Estate Finance class.

Assume that a lender offers a 30-year, $150,000 adjustable rate mortgage (ARM) with the fol-lowing 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 fol-lows: Beginning of year (BOY ) 2 = 7 percent; (BOY ) 3 = 8.5 percent; (BOY ) 4 = 9.5 percent; (EOY ) 5 = 11 percent. Compute the payments, loan balances, and yield for the ARM for the five-year period.