Question: The collateral for a floater-and-inverse structure is a fixed-rate bond with a 5% coupon, the floater coupon rate is the reference rate plus 2.2%, and

The collateral for a floater-and-inverse structure is a fixed-rate bond with a 5% coupon, the floater coupon rate is the reference rate plus 2.2%, and the ratio of the floater par to the inverse par is 5. What is the cap on the floater, in %, to the nearest 0.01%? Assume the floor coupon rate on the inverse floater is 0%.

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