A floating rate bond and an inverse floating rate bond are b…

A floating rate bond and an inverse floating rate bond are backed by $100 million portfolio of bonds. The coupon rate on the floater equals: r, where r is the reference floating rate. The coupon rate on the inverse floater equals: 12% – 2r. The floating rate tranche has a floor of 1%. The cap (in percent) on the inverse floating tranche is:

The yields on a one-year and two-year zero-coupon bonds are…

The yields on a one-year and two-year zero-coupon bonds are 4.0 and 5.0 percent, respectively. A dealer holds in inventory a  6.0 percent treasury note with a par value of 1,000.0 dollars and maturity of two years. What is the minimum price the dealer should ask for the bond?

I promise to adhere to [obey] FIU’s Student Code of Academic…

I promise to adhere to [obey] FIU’s Student Code of Academic Integrity. Violations include:”i. The unauthorized use of any materials, information, study aids or assistance from another person on any academic assignment or exercise, unless explicitly authorized by the course Instructor.ii. Assisting another Student in the unauthorized use of any materials, information, study aids, unless explicitly authorized by the Instructor.iii. Having a substitute complete any academic assignment or completing an academic assignment for someone else, either paid or unpaid.”

A floating rate bond and an inverse floating rate bond are b…

A floating rate bond and an inverse floating rate bond are backed by $100 million portfolio of 10-year bonds. The coupon rate on the inverse floater equals: 12% – 2r. The market value of the portfolio of 10-year bonds rises to $105 million. Assume the credit quality of the portfolio does not change. At the reset date, the value of the inverse floating tranche will: