A floaterinverse floater is created on 30000000 of


A floater/inverse floater is created on $30,000,000 of principal from a pool of 8% FRMs (assume payments are made annually). Half is allotted to the floater class and half to the inverse floater. If the market rate decreases by 2.5% in the next period, what will be the cash flow to the inverse floater?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A floaterinverse floater is created on 30000000 of
Reference No:- TGS01409235

Expected delivery within 24 Hours