An FI has purchased a $202 million cap of 9 percent at a premium of 0.75 percent of face value. Also available is a $202 million 4.2 percent floor with a premium of .80 percent of face value.

to. If interest rates go up to 10 percent, what is the amount the FI receives? What are the net savings after deducting the premium?
b. If the FI also buys an apartment, what are the net savings if interest rates go up to 11 percent? What are the net savings if interest rates fall to 3.2 percent? (Negative amounts should be indicated with a minus sign.)
c.If, instead, the FI sells (subscribes) the apartment, what are the net savings if interest rates rise to 11 percent? What if they fall to 3.2 percent? (Negative amounts should be indicated with a minus sign.)

a.	Received amount
	net savings
b.	Net savings if interest rates rise to 11 percent
	Net savings if interest rates fall to 3 percent
C.	Net savings if interest rates rise to 11 percent
	Net savings if they fall to 3 percent