Question: Given a 3-1 hybrid ARM with a 2-1-5 cap structure, and the following interest rate scenario, suppose the mortgage rate is 6 percent today when

Given a 3-1 hybrid ARM with a 2-1-5 cap structure, and

Given a 3-1 hybrid ARM with a 2-1-5 cap structure, and the following interest rate scenario, suppose the mortgage rate is 6 percent today when the mortgage is approved, the mortgage rate 5 years from now will be __%. (Do not include percentage sign.) Year 0 1 Interest Rate 6.00% 6.50% 7.00% 7.50% 8.00% 2 3 4 5 10.00%

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