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 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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