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OpenStudy (anonymous):
A bank advertises an adjustable rate mortgage with the following terms: 15 year 6/1 ARM at 5% with a 2/6 cap structure What are the maximum interest rates for the 7th year and for the life of the mortgage? 7th year: 6%; Lifetime: 6% 7th year: 6%; Lifetime: 11% 7th year: 7%; Lifetime: 11% 7th year: 7%; Lifetime: 6%
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