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?