Quick and correct answers will be given high ratings. Please use Excel and show the equations used for each answer. Thank you!

The projected one-year U.S. Treasury-bill index, to which the ARM is tied, as follows BOY2 = 10 percent; BOY3 = 11 peMake Nu Mortgage Company is offering home buyers a new mortgage instrument called the Stable Home Mortgage. This mortgage is composed of both a fixed rate and adjustable rate component. Mrs. Maria Perez is interested in financing the purchase of a new home. The home, which costs $100,000, is to be financed by Stable Home Mortgages (SHM) on the following terms: The SHM requires a 5 percent down payment, costs the borrower 2 discount points, and allows 75 percent of the mortgage to be fixed and 25 percent to be adjustable. The fixed portion of the loan is for 30 years at an annual interest rate of 10.5 percent. Having neither an interest rate cap nor payment cap, the adjustable portion is also for 30 years with the following terms: Initial interest rate = 9 percent Index = 1-year Treasuries Payments adjust each year Margin = 2 percent Interest rate cap = None Payment cap = None rcent; BOY4 = 8 percent; BOY5 = 12 percent. Calculate Mrs. Perezs total monthly payments and end-of-year loan balances for the first five years. Calculate the lenders yield, assuming Mrs. Perez repays the loan after five years. Repeat part (a) under the assumption that the initial interest rate is 9.5 percent and there is an annual interest rate cap of 1 percent.