"lizard national bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 million, with an interest rate ceiling of 11 percent and libor as the index representing the market interest rate. libor is 9 percent, 12 percent, and 13 percent at the end of each of the next three years, respectively. the total payments received (or paid) by lizard, including the initial fee, are $."
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Category: statistics | Author: Sarah Aksinia
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