Assume the following structure of a CMO Tranche Par Amount Coupon rate 100,000,000 7.5% 50,000,000 7.5% 96,500,000 7.5% D 73.500,000 7.5% Total 320.000,000 Suppose tranche C is split to create a floater with a principal of Kshs.80,416,667 and an inverse floater with a principal of Kshs.16,083,333 Required: What would be the cap rate for the inverse floater if the coupon rate for the floater i) is 1-month libor plus 1%. (10 marks) i Assuming that () the coupon formula for the floater is 1-month libor plus 1% and (2) a floor is imposed on the inverse floater of zero, what would be the cap rate on the floater