it goes to month 120!

F B D E Adjustable Rate Mortgage Excel Assignment Consider the following information and answer each of the questions below using arithmetic, algebra, and Excel functions as appropriate. Larz is considering an ARM loan offered by a local lender. The loan amount is $585,000. The term of the loan is 10 years. The margin on the loan is 3%. The teaser (first year only) is 1%. The composite rate adjusts annually and is subject to annual and lifetime caps of 2% and 5%, respectively. The loan does not provide for negative amortization nor does it provide floors. Assume the following forecast of index rates. The prevailing rate in the market for similar FRM loans is 5.25%. Make no 3 changes to this Excel workbook other than entering information needed in the yellow and pink highlighted cells and your answer calculation in the green highlighted cells. Only the green highlighted cells will be graded. Do not round intermediate 0 calculations (let Excel store all decimal values) 1 20. What is the yield to the lender if this loan is held to maturity? Month (Hint annwalised IRR by multiplying by 12 due to monthly cash flows) 0 1 2 3 4 6 9 10 11 12 13 14 F B D E Adjustable Rate Mortgage Excel Assignment Consider the following information and answer each of the questions below using arithmetic, algebra, and Excel functions as appropriate. Larz is considering an ARM loan offered by a local lender. The loan amount is $585,000. The term of the loan is 10 years. The margin on the loan is 3%. The teaser (first year only) is 1%. The composite rate adjusts annually and is subject to annual and lifetime caps of 2% and 5%, respectively. The loan does not provide for negative amortization nor does it provide floors. Assume the following forecast of index rates. The prevailing rate in the market for similar FRM loans is 5.25%. Make no 3 changes to this Excel workbook other than entering information needed in the yellow and pink highlighted cells and your answer calculation in the green highlighted cells. Only the green highlighted cells will be graded. Do not round intermediate 0 calculations (let Excel store all decimal values) 1 20. What is the yield to the lender if this loan is held to maturity? Month (Hint annwalised IRR by multiplying by 12 due to monthly cash flows) 0 1 2 3 4 6 9 10 11 12 13 14