An ARM loan's index for year one is 6%, the margin is 2%, the lifetime cap is 6%, the annual cap is 2%, and the first-year-only teaser is 1%. What is the first year contract rate? 6% 7% 8% 12% In the previous problem, which statement best describes the internal rate of return (IRR) of the investment? The IRR is greater than 14% The IRR is less than 14% The IRR may be less than or greater than 14% The IRR is zero An ARM loan's index for year one is 6%, the margin is 2%, the lifetime cap is 6%, the annual cap is 2%, and the first-year-only teaser is 1%. What is the first year contract rate? 6% 7% 8% 12% In the previous problem, which statement best describes the internal rate of return (IRR) of the investment? The IRR is greater than 14% The IRR is less than 14% The IRR may be less than or greater than 14% The IRR is zero