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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 year | 1 year | 1 year | |
| Points | 1% | 1% | 1% | 1% |
| Interest Rate Cap | NONE | 1%/year | 3%/year |
Which loan in the above table is an FRM?
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
3rd Edition
0123865492, 9780123865496
