Question 14 1 pts Sharon borrows an adjustable rate loan ( ARM ) of $100 000 with 3 year loan maturity . The initial interest rate for the loan is 8 5% the margin is 3% the loan amortization period is 15 years , the frequency of adjustment is 1 year monthly compounding ) . There will be a discount point of 3 % for the loan , Also , the index rates for the next 2 years are 11% and 8% , respectively . NOW suppose there is an annual interest rate cap of 2% specified in the loan contract , what will be the effective mortgage yield for borrowing this loan ? Assume that no negative amortization is allowed 1185% 11 . 42% 1208% 1 1 . 129Question 13 1 pts Sharon borrows an adjustable rate loan ( ARM ) of $100 000 with 3 year loan maturity . The initial interest rate for the loan is 8 5% the margin is 3% the loan amortization period is 15 years , the frequency of adjustment is 1 year monthly compounding ) , no interest rate cap or payment cap . There will be a discount point of 3 % for the loan . Also the index rates for the next 2 years are 1 1 % and 8 % , respectively . What will be the effective mortgage yield for borrowing this loan 12.47% 12.28% 21.98% 1202%