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. 7%
B. 6.75%
C. 6%
D. cannot be determined
E. 4%
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Financial and managerial accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
1st edition
111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114
