Please help to answer all questions.

What is the difference between interest rate risk and default risk? How do combinations of terms in ARMs affect the allocation of risk between borrowers and lenders? If an ARM is priced with an initial interest rate of 8 percent and a margin of 2 percent (when the ARM index is also 8 percent at origination) and a fixed rate mortgage (FRM) with constant payment is available at 11 percent, what does this imply about inflation and the forward rates in the yield curve at the time of origination? What is implied if a FRM were available at 10 percent? 12 percent? 6. 7. 8. What is meant by the incremental cost of borrowing additional funds? 9. Is the incremental cost of borrowing additional funds affected significantly by early repayment of the loan? 10. What are the capital gains rules as applied to residential property owners? What is the difference between interest rate risk and default risk? How do combinations of terms in ARMs affect the allocation of risk between borrowers and lenders? If an ARM is priced with an initial interest rate of 8 percent and a margin of 2 percent (when the ARM index is also 8 percent at origination) and a fixed rate mortgage (FRM) with constant payment is available at 11 percent, what does this imply about inflation and the forward rates in the yield curve at the time of origination? What is implied if a FRM were available at 10 percent? 12 percent? 6. 7. 8. What is meant by the incremental cost of borrowing additional funds? 9. Is the incremental cost of borrowing additional funds affected significantly by early repayment of the loan? 10. What are the capital gains rules as applied to residential property owners