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Suppose a bank buys an interest rate floor that has these terms: the floor will last for 3 years; payment is annually; the floor rate
Suppose a bank buys an interest rate floor that has these terms: the floor will last for 3 years; payment is annually; the floor rate is 4.7%; and the notional amount is $20 million. What would the writer of this floor pay if the LIBOR were 5.45%
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