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
RISK RETURN RELATIONSHIP A business operates in a market environment, which is not within its control. It is exposed to several dangers from the internal with external sources

Hi, what is your time limits on providing solutions

Additional Paid in Capital - Amounts paid for stock in excess of its PAR VALUE or STATEDVALUE. Furthermore, other amounts paid by stockholders and charged to EQUITY ACCOUNTS other

Can a corporation have too much working capital?  Explain. A firm can have very much working capital if it is losing the opportunity to invest in high returning fixed assets and

Compare and contrast mutual and stockholder-owned savings and loan associations. Some loan and savings associations are owned by stockholders, just as commercial banks and oth

Q. Explain about Book Value Weights? Book Value Weights: - Book value weights are calculating form the values taken from the balance sheet. The weight to be assigned to every s

We defined the conversion premium as the difference between the market price of the convertible and the conversion value. The conversion premium ratio tells us ab

Q. Explain about Inventory Turnover Ratio ? Inventory Turnover Ratio: - Definite items of inventory are slow moving. It signifies that their consumption is quite slow and capit

What is the usual pattern of cash flows for a share of preferred stock? How does the market determine the value of a share of preferred stock, given these promised cash flows?

In order to provide for R10 million to build a new warehouse in 5 years time, a company plans to make equal payments at the end of each six months into a fund which earns 9% per ye