What is the contract rate for year three if the index is


If the initial contract rate on an ARM is 6%, the second year contract rate is 9%, the margin is 2%, the life of the loan cap is 5%, and the annual cap is 3%, what is the contract rate for year three if the index is 9%? Please, explain how you arrived to the answer.

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Financial Management: What is the contract rate for year three if the index is
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