Question
1)A floater and an inverse floater are being created from a CMO tranche with a par value of $120,000 and a coupon rate of 7%.
1)A floater and an inverse floater are being created from a CMO tranche with a par value of $120,000 and a coupon rate of 7%. If the coupon rate of the floater is LIBOR + 1% and the coupon leverage is 4, then the coupon rate of the inverse floater will be ___-4LIBOR
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
