Question: I need this completed with work shown please 6) An interest rate cap allows the buyer of the cap to be compensated if interest rates

I need this completed with work shown please 6) An interest rateI need this completed with work shown please

6) An interest rate cap allows the buyer of the cap to be compensated if interest rates rise above a reference rate. The buyer has to pay a periodic premium to obtain this protection. When an RMBS transaction has a pool of floating-rate loans, what type of protections doe:s an interest rate cap provide? Give an example of an interest rate cap

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