Sermon

We have been studying Jesus Sermon on the Mount in the Gospel of Matthew.  On page 85 of the text, it states, Jesus Sermon on the Mount (Matthew 5-7) contains the heart of Jesus ethical message.

Imagine that you were to meet one of your friends from a school that does not study the Sermon.  Somehow, mention of the Sermon comes up in your conversation.  Your friend asks, Whats the big deal about Jesus Sermon on the Mount? What does the Sermon on the Mount have to do with ethics?

Given our discussions in class (refer to slides), reading/listening to the Sermon (pgs 92-98), and the article read, how would you respond? In a Word or Google document, slides, or other approved format compose a response consisting of these 3 topics:
the historical context in which the Sermon was written (exegesis)
what Jesus is teaching, in general (do not just list every passage)
the purpose of the sermon and its ethical implications for followers of Jesus then, and now (hermeneutics)
how is the Sermon an Ethics of the Kingdom of Heaven? 
how can we apply the Sermon to our everyday lives?