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A 30-year 1/1 ARM has an initial rate of 7.85%. In the future, the rate will reset to 225 basis points above the LIBOR index
A 30-year 1/1 ARM has an initial rate of 7.85%. In the future, the rate will reset to 225 basis points above the LIBOR index with no rate caps or floors. In
1 year, at the time of the first reset, the LIBOR is 1%. What interest rate will be used to compute payments at the first reset?
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Options Futures And Other Derivatives
Authors: John C. Hull
8th Edition
0132164949, 9780132164948
