Question
LOAN 1 LOAN 2 LOAN 3 LOAN 4 Initial Interest Rate ? ? ? ? Loan Maturity (years) 20 20 20 20 % Margin Above
LOAN 1 LOAN 2 LOAN 3 LOAN 4 Initial Interest Rate ? ? ? ? Loan Maturity (years) 20 20 20 20 % Margin Above Index 3% --- 3% 3% Adjustment Interval 1 yr. --- 1 yr. 1 yr. Points 1% 1% 1% 1% Interest Rate Cap NONE ---- 1%/yr. 3%/yr. With which loan in the above table does the lender have the lowest interest rate risk? Loan 1 Loan 2 Loan 3 Loan 4
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The Handbook Of Financial Instruments
Authors: Frank J. Fabozzi
1st Edition
0471220922, 978-0471220923
