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Consider a non-carryover 2-year adjustable-rate mortgage with the repricing frequency of one year. The initial teaser rate is 6.5% and it has annual and lifetime

Consider a non-carryover 2-year adjustable-rate mortgage with the repricing frequency of one year. The initial teaser rate is 6.5% and it has annual and lifetime caps of 2% and 5%, respectively. What is the highest level that the mortgage rate can reach after four years (i.e., at the beginning of year 5)?

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