What interest rate will be used to compute payments

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Reference no: EM131989272

A 30 year 111 ARM has an initial rate of 1.5%. In the future the rate will reset to 225 basis points above the LIBOR index with no rate caps or floors.

In 1 year, at the time of the first reset, the LIBOR is 6.75%.

What interest rate will be used to compute payments at the first reset?

Reference no: EM131989272

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