Question
explain how you can replicate the cash flows coming from a 3-year FRN that pays semi-annual coupons of LIBOR +4.5% by rolling 6-month loans made
explain how you can replicate the cash flows coming from a 3-year FRN that pays semi-annual coupons of LIBOR +4.5% by rolling 6-month loans made to borrowers who also pay the spread of 4.5% above LIBOR on their loans.
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
