Question: All other things being equal, the value of a floating rate bank loan with a 4.5% interest rate cap (ceiling limit on coupon rate bank

All other things being equal, the value of a floating rate bank loan with a 4.5% interest rate cap (ceiling limit on coupon rate bank can charge the borrower) should be more stable than the value of the same loan but with a 6% rate cap. Discuss.

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All other things being equal the value of a floating rate bank loan with a 45 interest rate cap should be more stable than the value of the same loan ... View full answer

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