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Please answer these two questions of the fixed income. Assume that the formula for the coupon rates of a floater and an inverse floater are:

image text in transcribedPlease answer these two questions of the fixed income.

Assume that the formula for the coupon rates of a floater and an inverse floater are: Floater coupon rate: reference rate + 1.5% Inverse floater coupon rate: 12%-reference rate Answer the following questions: (A) What is the coupon rate of the fixed rate collateral for these two floating rate bonds? (B) Suppose the floor for the inverse floater is 1%. What would be the cap of the floater? What is the relationship between a bond's dirty price and clean price? Under what condition, a bond's dirty price is different from its clean price

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