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4. Suppose that you are designing a 2-year maturity interest only loan based upon the floating rate. Interest rates will be reset every 6 months

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4. Suppose that you are designing a 2-year maturity interest only loan based upon the floating rate. Interest rates will be reset every 6 months and quotation rate is 6 month KORIBOR. When the spread is given as 200 bps, what is the average interest rate for the loan term? The forecasts for 6 month KORIBOR are as follows (10 points): 2nd Half KORIBOR 1st 250 (Unit: basis point) 3rd 4th 350 300 300 Interest Rate

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