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A bank makes a $5 million 180-day pure discount loan at LIBOR of 9 percent. At the same time, however, it exercises an interest rate
A bank makes a $5 million 180-day pure discount loan at LIBOR of 9 percent. At the same time, however, it exercises an interest rate put that has a strike of 11 percent. Find the annualized rate of return on the loan. Ignore the cost of the put
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