You have an outstanding mortgage balance of $390,000. You have 22 months remaining on your 5-year loan at an annual interest rate of 6.2%, compounded semi-annually. If the current rate of 5-year fixed rate mortgages is 4.2%, compounded semi-annually, what would be your blended annual rate on a new 5-year loan?

Select one:

a. 6.2%

b. 4.2%

c. 4.93%

d. 5.2%