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Assume that the formula for the coupon rates of a floater and an inverse floater are: Floater coupon rate: reference rate + 1% Inverse floater

Assume that the formula for the coupon rates of a floater and an inverse floater are: Floater coupon rate: reference rate + 1% Inverse floater coupon rate: 8% - reference rate Suppose the cap of the coupon rate for the floater is 6%. What would be the floor of the inverse floaters coupon rate?

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7%

3%

6%

8%

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