medium · Debt Capital Markets bond-instruments-structures
An SOFR-based instrument fixes with a CSA of 26 bps and a margin of 200 bps.
If the SOFR floor is set at 4.00% and the actual SOFR fix is 4.15%, what is the effective coupon rate?
- 6.41%
- 6.15%
- 6.26%
- 4.41%
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