Compute the payments, loan balances, and the mortgage yield for the ARM for the five-year period. Loan amount $ 150,000 Amortization 30 years Initital rate The margin 7.5% 2.00% Index Year 2 7.00% Year 3 8.50% Year 4 9.50% Year 5 11.00% $ Nominial Interest Capped Interest Payment @ capped Balance Rate Rate Period rate Ending Balance 150,000.00 7.50% ?x 360 ? ? ? 9.00% ? 348 ? ? ? 10.50% ? 336 ? ? ? 11.50% ? 324 ? ? ? 13.00% ? 312 ? ?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Compute the payments, loan balances, and the mortgage yield for the ARM for the five-year period.
Loan amount
$
150,000
Amortization
30
years
Initital rate
The margin
7.5%
2.00%
Index
Year 2
7.00%
Year 3
8.50%
Year 4
9.50%
Year 5
11.00%
$
Nominial Interest
Capped Interest
Payment @ capped
Balance
Rate
Rate
Period
rate
Ending Balance
150,000.00
7.50%
?x
360
?
?
?
9.00%
?
348
?
?
?
10.50%
?
336
?
?
?
11.50%
?
324
?
?
?
13.00%
?
312
?
?
Transcribed Image Text:Compute the payments, loan balances, and the mortgage yield for the ARM for the five-year period. Loan amount $ 150,000 Amortization 30 years Initital rate The margin 7.5% 2.00% Index Year 2 7.00% Year 3 8.50% Year 4 9.50% Year 5 11.00% $ Nominial Interest Capped Interest Payment @ capped Balance Rate Rate Period rate Ending Balance 150,000.00 7.50% ?x 360 ? ? ? 9.00% ? 348 ? ? ? 10.50% ? 336 ? ? ? 11.50% ? 324 ? ? ? 13.00% ? 312 ? ?
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