A firm can issue one of the listed products and convert them into the floating rate using
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Question:
A firm can issue one of the listed products and convert them into the floating rate using IR swaps (LIBOR for 3.7% fixed). What is the lowest floating rate that the firm can get?
Fixed rate note: 4%
Simple FRN: L + 0.5%
Inverse floater: 7.6% - L
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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