This paper studies the pricing of an Inverse FRN using one-factor Hull and White model(1994) and carries out the pricing of the equilibrium price through the Hull and White trinomial tree. One-factor Hull and White model is very attractive because it is capable of fitting an arbitrary initial term structure and analytically tractable. The comparison of the issuing prices and the theoretical prices shows that the theoretical prices calculated from Hull-White model give very close values to the issuing prices.
