Question: Given a 3-1 hybrid ARM with a 2-1-5 cap structure, and the following interest rate scenario. Year Interest Rate 0 5.00% 1 6.50% 2 7.00%

Given a 3-1 hybrid ARM with a 2-1-5 cap structure, and the following interest rate scenario.

Year Interest Rate
0 5.00%
1 6.50%
2 7.00%
3 7.50%
4 10.00%
5 11.00%

Suppose the mortgage rate is 5 percent today when the mortgage is approved, the mortgage rate 4 years from now will be _____ %. (Do not include percentage sign. Round your answer to two decimal places, e.g., 32.16)

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