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Interest paid to the inverse floater tranche investors

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Reference no: EM133109716

BOA issues $2??m in EMU. 36% of the issue is floater tranche with index = LIBOR [currentlyr 6%) and margin = 1%. The remaining 25% is inverse floater tranche that is designed to keep the total cost of ?nancing constant. The next year LlBOR falls to 4%. What would be the interest paid to the inverse floater tranche investors? Enter 1your answer in percent, but without percent sign.

Reference no: EM133109716

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