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Assume the initial rate on a 1/1 ARM is 2.50%. The loan has a margin of +225 basis points above Libor. In one year after

Assume the initial rate on a 1/1 ARM is 2.50%. The loan has a margin of +225 basis points above Libor. In one year after the loan is originated, the Libor is 7.20%. What is the fully indexed rate on the loan in one year?

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