A two-year floating-rate note pays six-month Libor plus 80 bps. The floater is priced at 97 per
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A two-year floating-rate note pays six-month Libor plus 80 bps. The floater is priced at 97 per 100 of par value. The current six-month MRR is 1.00%. Assume a 30/360 day-count convention and evenly spaced periods. The discount margin for the floater in basis points is closest to:
A. 180 bps.
B. 236 bps.
C. 420 bps.
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