Question: You are seeking a ( 3 0 - year ) ARM loan of $ 2 5 0 , 0 0 0 which will charge 2

You are seeking a (30-year) ARM loan of $250,000 which will charge 2 points. Assuming
you keep this loan for 4 years, what are your CFs and the yield to lender (expressed as
APR)? What do you pay each year in interest?

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