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QUESTION 1 10 points Save Answer A bank makes a 30 year Fully Amortizing FRM for $800,000 at an annual interest rate of 4% compounded monthly, with monthly payments. What is the difference between the balance and the market value of the loan after 36 monthly payments if the interest rate rises to 5%? (Give the absolute value of the difference, so the answer should be a positive number.) QUESTION 2 10 points Save Answer A bank makes a 30 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 6% compounded monthly, with monthly payments Suppose inflation is 5% per year, compounded monthly. What is the real value of the 120th payment? QUESTION 3 10 points Save Answer Assume the initial rate on a 1/1 ARM is 2.50%. The loan has a margin of +225 basis points above Libor. in one year after he oan originated, the Libor is 7.20%. What is the fully indexed rate on the loan in one year? QUESTION 4 10 points Save Answer Suppose a bank pays depositors 3.25% on their checking deposits. The same bank makes mortgages at 5.20 Interest Margin (NIM)? What is the bank's Net