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  • May 12, 2016 at 6:46 pm #314806
    e1daae457e7f461a270d92827d18278670c05465c3dc9aa319ed9ad46aee5239 80arjundilip
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    Probably cause of the fact that the trasurer wishes to fix the max rate at 6.6%
    94000=6%
    phobos premium=0.5%
    put premium=.168%
    that would give a total of 6.668%
    the other two options give you an max interest rate of 6.795% & 6.55%,but in the latter case the premium is high and it would be a waste if the interest rate happens to fall,so we stick the cap at 94000.

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