Question
A floater and an inverse floater are being created from a CMO tranche with a par value of $150,000 and a coupon rate of 5.5%.
A floater and an inverse floater are being created from a CMO tranche with a par value of $150,000 and a coupon rate of 5.5%. If the coupon rate of the floater is LIBOR + 0.75% and the coupon leverage is 2, then the coupon rate of the inverse floater will be ___- 2LIBOR Question 7 options:
15%
18%
25%
31%
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How To Trade With High Probability
Authors: Ricardo Moneta
1st Edition
1542590159, 978-1542590150
