Question: Given a 3-1 hybrid ARM with a 2-1-5 cap structure, and the following interest rate scenario. Year Interest Rate 0 6.00% 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.

YearInterest Rate
06.00%
16.50%
27.00%
37.50%
48.00%
510.00%

Suppose the mortgage rate is 6 percent today when the mortgage is approved, the mortgage rate 5 years from now will be _____ %.

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