De-leveraged floaters, Financial Management

A floater where the coupon rate is computed as a fraction of the reference rate plus a quoted margin, are known as a de-leveraged floater. The general formula for this kind of floaters is

         Coupon rate = b x (Reference rate) + Quoted margin

Where, b is a value between 0 and 1.

 

Posted Date: 9/8/2012 5:18:46 AM | Location : United States







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