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A floater where the coupon rate is computed as a fraction of the reference rate plus a quoted margin, are known as a de-leveraged floater. The general formula for this kind of floaters is
Coupon rate = b x (Reference rate) + Quoted margin
Where, b is a value between 0 and 1.
Discuss the criteria for a ‘good’ international monetary system. Answer: A good international monetary system must offer (i) sufficient liquidity to the world economy, (ii)
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