Show all your work in solving the problems. You don't need to provide formulas but do need to show all calculator keystrokes to get full credit for your answers. Each problem is worth 20 points. 1. A borrower can get a mortgage for $400,000 over 30 years with the following terms: a. Initial interest rate = 4% b. Index = 1 year Treasuries c. Payments adjusted annually d. Margin = 2% e. Negative amortization = yes f. Based on forward rates the index is forecasted as follows: Beginning of year BOY2=3%, BOY3=5%, BOY4=6%, BOY5=8% Compute the payments, loan balances, and the cost of borrowing over the 5- year period