rate cap

With regards to a rate cap…if we assume the rate cap pays semi-annually, & if we buy a cap that lasts 1 year…since the payments are made in arrears (and I know at 6 months there is no cash flow), is there a payoff at t=12 months and then another at 1=1.5 years in? odd that a 1 year cap would have a payoff 1.5 years later after initiation, but I think that’s the case & want to confirm?


The first payment will be in 6 months and the second will be in 12 months, not 12 and 18.

In that respect it’s similar to a 1-year swap.