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examiners aricle on interest risk (sept2011)

This topic has 2 replies, 3 voices, and was last updated 13 years ago by bridmw.

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November 18, 2011 at 7:59 pm #50562
furhana
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how does he calculate the interest on the loan i got 348500 at interest rate of 6.97 %.please help am confused thanks and what futures rate is he selling at we are buying at 93.790 are we selling at 94 or 93.870?
November 18, 2011 at 8:36 pm #89944
bridmw
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Where are you getting 6.97%. Current LIBOR is 6% and the range used is 5.5% to 7%, the 90bp margin over LIBOR doesn’t change.
He sells the March futures at 93.870
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