Stepped spread floaters, Financial Management

Stepped spread floaters have a provision to change the quoted margin at certain intervals over a floater's life. The quoted margin could either step to a higher level or a lower level. An example of such kind of floater is a 5-year floating-rate note, where the coupon rate is 6-month MIBOR + 1% for the first 2 years, and for the remaining 3 years the coupon rate is calculated based on the 3-month MIBOR + 3%. 

Posted Date: 9/8/2012 5:23:13 AM | Location : United States







Related Discussions:- Stepped spread floaters, Assignment Help, Ask Question on Stepped spread floaters, Get Answer, Expert's Help, Stepped spread floaters Discussions

Write discussion on Stepped spread floaters
Your posts are moderated
Related Questions
Q. What are Sources of Finance? No details are specified concerning the nature of a business to comment on and hence only general recommendations can be made. Given that fixed

Illustrate the term structure of interest rates? The term structure of interest rates: The term to maturity affects the interest rate. Bonds along with identical risk may


How does the market determine the fair value of a bond? The fair value of a bond is a present value of the bond's coupon interest payments plus the present value of the face va

Question : (a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Proj

I need assistance on Cost of preference share capital in financial management? Can someone help me to solve this proble with example It's Urgent!!!!!!!

The assets and liabilities of S Harrison as at 30 June 2012 are: On 1 July 2011 when the business commenced, Harrison owed $58,000 on the land and buildings and $1,200 on

discuss the applicability of operating cycle in poultry industry[consider broilers]

Interference of Central bank in Markets: Some dilemmas exist in the issue of central bank intervention in the market to correct the volatilities in the prices. In some countrie

Q. Explain demerits of accept-reject criteria? Demerits of ARR:- (i) It utilizes accounting income rather than cash flows: - The principal short coming of ARR schema is th