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BYL Inc. issued a 20-year floating rate bond with face value of $1,000. The coupon payments...

  1. BYL Inc. issued a 20-year floating rate bond with face value of $1,000. The coupon payments of the floater are calculated based on the basis of the coupon formula of 180-day LIBOR+150 basis points. The floor and cap of the floater are 3.5 percent and 7 percent respectively. Compute the coupon rate and coupon payments for the floater under the following LIBOR rates:

1%, 1.50%. 2%, 2.25%, 3%, 4.75%, 5%, 5.25%, 5.50%, 5.75%, and 6%.

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