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In the quarter starting April 1, the All in Rate is less than the Strike Rate. Therefore Eagle Accounting calculates a coupon rate using the following formula:
Strike Rate - All in Rate = Coupon Rate, or 8.0% - 7.5% = .5%
Inverse Floaters act in the similar manner with the following exception: the All in Rate is calculated using this formula:
All in Rate = Inverse Floating Rate - (Coupon Rate from the underlying security + Index Offset) * Inverse Multiplier
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