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  3. 1. bank of florida na. purchased a 10% interest ra

1. Bank of Florida NA. purchased a 10% interest rate cap, with face value of...

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Accounting

1. Bank of Florida NA. purchased a 10% interest rate cap, with face value of 5 millions for 1.45% of face value. If at expiration date interest rate are 11.35%. What is the profit/(loss) of Bank of Florida NA.?

2. JK Capital Markets sold a 5% interest rate floor with a face value of 4 millions for 2.5% of face value. If at expiration date interest rates are 3.5%, How much is the profit/(loss) of JK Capital Markets?

3. If the Treasury bill return is 5% and the market return is 9%. What is the required rate of return for a company with a -.4 beta coefficient?

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