At the first half of the fourth year, why is it 5 adjustments if adjustments are semi annual (twice a year)? wouldnt it be

year #1: 1 adjustment + 1 adjustment

year #2: 1 adjustment + 1 adjustment

year #3: 1 adjustment + 1 adjustment

year #4: 1 adjustment (first half)

making it 7 adjustments?

An adjustable rate mortgage loan with a teaser start rate of 1.0% for the first year, an index of the 11^th District COFI rate, a margin of 2.0%, and periodic and lifetime interest rate increase caps of 1%/6% with semi-annual adjustments, would have a maximum interest rate of what for the first half of the fourth loan year if the 11^th District COFI rate is 6.0% at that time?

here is the solution im given:

Teaser rate 1.0%

Index 6.0%

Period cap 6.0%

Margin 2.0%

Lifetime cap 7.0%

Adjustments = 5

Period cap 1.0%

Lifetime cap 6.0%

Index + Margin 8.0%

Maximum rate 6.00%

OHhh is it because: year one is a teaser year at 1.0%, and then adjustments are made starting year two:

year #2: 1 adjustment + 1 adjustment

year #3: 1 adjustment + 1 adjustment

year #4: 1 adjustment (first half)

= 5 total adjustments