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A borrower takes out a 7-year interest-only mortgage loan for 500,000 with monthly payments. The first two years of the loan have a teaser rate

A borrower takes out a 7-year interest-only mortgage loan for 500,000 with monthly payments. The first two years of the loan have a teaser rate of 2%, after that, the rate can reset annually with 2% annual and 6% lifetime caps. On the first reset date, the fully indexed rate is 5%. What would be the monthly payment in the third loan year?

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