Question
An ARM with 2/6 (2% annual and 6% lifetime cap) interest rate caps and a 2.75 margin has a current contract rate of 7%. It's
An ARM with 2/6 (2% annual and 6% lifetime cap) interest rate caps and a 2.75 margin has a current contract rate of 7%. It's adjustment time and the index value is 4%. The next year's contract rate is:
- A. cannot be determined
- B. 6%
- C. 4%
- D. 7%
- E. 6.75%
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Valuation, Measuring And Managing The Value Of Companies
Authors: Tim Koller, Marc Goedhart, David Wessels
7th Edition
1119611865, 9781119611868
