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Caps, Floors and Collars: An FI has purchased a $200 million cap of 9% at a premium of 0.65% of face value. A $200 million

Caps, Floors and Collars: An FI has purchased a $200 million cap of 9% at a premium of 0.65% of face value. A $200 million floor of 4% is also available at a premium of 0.69% of face value. (a) If...

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