Question
You just purchased a 7 year cap with a cap rate of 6.2% and a notional of $1 million. If actual rates are 7.7%, the
You just purchased a 7 year cap with a cap rate of 6.2% and a notional of $1 million. If actual rates are 7.7%, the next cap payment will be: (assume all rates are annual rates, and payments are made annually.)
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
