Sharonborrows an adjustable rate loan (ARM)of $100,000 with 3 yearloan maturity.The initial interest rate for the loanis 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 adiscount point of3% 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.