maining Time: 1 hour, 14 minutes, 27 seconds. Lestion Completion Status: QUESTION 6 A 30-year 1/1 ARM has an initial rate of 7.85%. In the future, the rate will reset to 225 basis points above the LIBOR index with no rate caps or floors. In 1 year, at the time of the first reset, the LIBOR is 1%. What interest rate will be used to compute payments at the first reset