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Is the interest rate fixed or floating?

April 26, 2017fixed floating Interest rate

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Posted

Is the interest rate fixed or floating?

1 Answer

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Posted

The interest rate is fixed during the first 5 years of the issue and floating thereafter. After the 5th anniversary of the issue the rate becomes a floating rate with a pre-determined spread and at the 10th anniversary a step-up of 1% will be added to this pre-determined spread.