In this example, a financial institution buys 100,000 shares at $10/sh. The base rate is still 12% but the offset (for this large order) is 2%. How much will the interest rate be?

Question

 In this example, a financial institution buys 100,000 shares at $10/sh. The base rate is still 12% but the offset (for this large order) is 2%. How much will the interest rate be?

Answer 1

The interest rate is calculated by subtracting the offset from the base rate. The number of shares and their price are not needed for this calculation. This means the interest rate will be 10%.