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Assume that the Bonk of Topeka anticipates that Interest rates will increase over the next several years and decides to hedge the interest rate risk

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Assume that the Bonk of Topeka anticipates that Interest rates will increase over the next several years and decides to hedge the interest rate risk on its portolios by purchasing a three-year interest, rate collar, which uses LiBOR as the index used to represent the prevalting interest rate, The interent rate cap specifies a fee of 3 percent of notional principal valued at $90 milion with an interest rate celling of 8 percent. The interest rate floor specifies a fee of 3 percent of notional principal valued at $90 millon and an interest rate floor of 7 percent. Given this information, fill in the table that follows

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