Question: 12. A 30 year 1/1 ARM has an initial rate of 8.5%. In the future the rate will reset to 350 basis points above the

12. A 30 year 1/1 ARM has an initial rate of

12. A 30 year 1/1 ARM has an initial rate of 8.5%. In the future the rate will reset to 350 basis points above the LIBOR index subject to a 2/3/4 rate cap structure. What is the maximum interest rate the borrower can be charged at the time of the first reset? A) 3.50 10.50 12.00 12.50 D)

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