An inverse floater is a security that is an FRN where the coupon rate varies inversely to the indexed rate. An example of an inverse floater is as follows. Consider a three-year semiannual pay FRN where the coupon rate equals: 

Where ℓ is the six-month Libor rate. The further condition on this note is that if ℓ > 12%, then c = 0%. Using various parity relationships, reduce and express this inverse floater as the simplest possible combination of “basic” securities, such as straight bonds, caps, floors, etc.