Question: Robyn got a 5 / 1 adjustable rate mortgage with an initial rate or 4 . 5 % and the following caps: 1 / 2

Robyn got a 5/1 adjustable rate mortgage with an initial rate or 4.5% and the following caps: 1/2/4. The mortgage is indexed to 1 year CMT which is currently at 7% and a 300 basis point margin. Assuming the index doesn't change for the duration of the mortgage, what will be Robyn's mortgage rate in year 7?

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