What will be the cash flow to the inverse floater

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A floater/inverse floater is created on $30,000,000 of principal from a pool of 8% FRMs (assume payments are made annually). Half is allotted to the floater class and half to the inverse floater. If the market rate decreases by 2.5% in the next period, what will be the cash flow to the inverse floater?

Reference no: EM131063410

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