Problem 5-7 An ARM is made for $215,000 for 30 years with the following terms: Initial interest rate =7 percent Index =1-year Treasuries Payments reset each year Margin =2 percent Interest rate cap = None Payment cap =5 percent increase in any year Discount points =2 percent Fully amortizing; however, negative amortization allowed if payment cap reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BOY)2=7 percent; (BOY)3=8.5 percent; (BOY)4=9.5 percent; (BOY)5=11 percent. Required: Compute the payments and loan balances for the ARM for the five-year period. Compute the yield for the ARM for the five-year period. Please use excel and excel functions to answer the questions.