A company caps 3 -month LIBOR at (10 %) per annum. The principal amount is ($ 20)
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A company caps 3 -month LIBOR at \(10 \%\) per annum. The principal amount is \(\$ 20\) million. On a reset date, 3-month LIBOR is \(12 \%\) per annum. What payment would this lead to under the cap? When would the payment be made?
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Since the company capped the 3month LIBOR at 10 per annum the effective interest rate for this perio...View the full answer
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