What is the leverage factor

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A $300 million five year inverse floater currently priced at par has coupon of .32-5LIBOR. Suppose LIBOR increases to 6.4 percent by the end of first year. What is the market value of this inverse floater at the end of 1 year? What is the leverage factor for this bond? How Much coupon interest the holder of this bond receives if the LIBOR drops to 3 percent?

Reference no: EM131557220

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