Question: Given a 3-1 hybrid ARM with a 2-1-5 cap structure, and the following interest rate scenario. Year Interest Rate 0 7.00% 1 7.50% 2 8.00%

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


YearInterest Rate
07.00%
17.50%
28.00%
38.50%
49.00%
511.00%


Suppose the mortgage rate is 7 percent today when the mortgage is approved, the mortgage rate 5 years from now will be _____ %.

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