An interest rate collar (collar – collar option) which covers notional principal amounts (NPAs) decreasing on a scheduled basis. Amortization implies repayments of principal on an underlying asset over time. An collar may be embedded in a loan (or any similar instrument) whose principal is repaid over the life of the agreement.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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