Question 5 (40 points): Multiple Cash Flows (spend around 15 minutes on this) You purchase a home for $100,000 and borrow the entire amount today from Broadway Bank at an APR of 2.4% with monthly payments. The maturity of your mortgage equals 20 years. You start paying off your mortgage in one month. a) Draw a time line that depicts the cash flows from the mortgage payments. Compute the payment and show your inputs and work. Compute the outstanding mortgage amount after you have made 5 years of payments. Show this point on the time line What is the interest and principal component of your mortgage payment on the payment right after 5 years from today? b) Draw the current term structure of interest rates. What does the current term structure, as you have graphed, imply for the future path of future interest rates? (2 lines only) Question 5 (40 points): Multiple Cash Flows (spend around 15 minutes on this) You purchase a home for $100,000 and borrow the entire amount today from Broadway Bank at an APR of 2.4% with monthly payments. The maturity of your mortgage equals 20 years. You start paying off your mortgage in one month. a) Draw a time line that depicts the cash flows from the mortgage payments. Compute the payment and show your inputs and work. Compute the outstanding mortgage amount after you have made 5 years of payments. Show this point on the time line What is the interest and principal component of your mortgage payment on the payment right after 5 years from today? b) Draw the current term structure of interest rates. What does the current term structure, as you have graphed, imply for the future path of future interest rates? (2 lines only)