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a floating rate bond and an inverse floating rats bond are backed by $100 million portfolio of 10-year bonds. the coupon rate on thd inverse
a floating rate bond and an inverse floating rats bond are backed by $100 million portfolio of 10-year bonds. the coupon rate on thd inverse floater equals: 12% - 2r. The market value of the portfolio of 10-year bonds rises $110 million. Assume the credit quality of the portfolio does not change. At the reset date, the value of the inverse floatinv tranche will:
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