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A mortgage of $169,900 was taken out when the 5-year mortgage interest rate was 7.2% compounded...

A mortgage of $169,900 was taken out when the 5-year mortgage interest rate was 7.2% compounded semi-annually. 36 months later, the 5-year mortgage interest rate has decreased to 5.5%. What would be the new blend-and-extend mortgage rate if this mortgage is refinanced for a new 5-year term?

Select one:

a. 5.50%

b. 7.20%

c. 6.80%

d. 6.34%

e. 6.18%

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