suppose an s&l buys an interest rate cap that has these terms: the reference rate is the six-month treasury bill rate; the cap will last for five years; payment is semiannual; the stnke rate is 5.5%; and the notional amount is $10 million. suppose further that at the end of some six-month period, the six-month treasury bill rate is 6.1 %. a. what is the amount of the payment that the s&l will receive? b. what would the writer of this cap pay if the 6-month treasury rate were 5.45% instead of 6.1

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a ANSWER The amount of the payment that the SL will receive is 27500 WORKING The reference rate is t... View the full answer