Please show your work for full credit You are given that the teaser rate on a 1/1ARM is 2.50%. The mortgage has a margin of 2% above 1-year CMT, subject to a rate cap 5/2/5. Answer the following questions: (i) What is the maximum rate the mortgage can reset to on its first reset date? (ii) The CMT is 2% at the time of the first reset and at the time of the second reset it goes to 3.5%. What would the rate reset to for the third year? ("Please not that the first reset rate applies to the second year payments and the second reset rate applies to the third year payments.)