An ARM Has the Following Characteristics at the Outset: Index

question 22

Multiple Choice

An ARM has the following characteristics at the outset: index value = 5%,margin = 2.75,teaser rate = 5.50%.The contract interest rate for the first year is:

• A) 5%
• B) 5.50%
• C) 7.75%
• D) cannot be determined

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Definitions:

Reagents

Chemical substances used in reactions to bring about and probe chemical changes, often to transform reactants into products.

2,2-dimethyloxirane

A type of oxirane with two methyl groups attached to the same carbon atom, used in organic synthesis.

Ethanol

A volatile, flammable, colorless liquid alcohol, used as a solvent, antiseptic, and intoxicant.

Trace of HCl

A very small amount of Hydrochloric acid, often used in chemical reactions.