An analyst evaluates the following information relating to floating rate notes (FRNs) issued at par value that have three month MRR as a reference rate Based only on the information provided, the FRN that will be priced at a premium on the next reset date is A FRN X B FRN Y C FRN Z Floating Rate No...

To determine which FRN will be priced at a premium on the next reset date we need to compare the quo ...

An analyst evaluates the following information relating to floating-rate notes (FRNs) issued at par value that have

Question:

An analyst evaluates the following information relating to floating-rate notes (FRNs) issued at par value that have three-month MRR as a reference rate: Floating-Rate Note X Y N Quoted Margin 0.40% 0.45% 0.55% Discount Margin 0.32% 0.45% 0.72%

Based only on the information provided, the FRN that will be priced at a premium on the next reset date is:

A. FRN X.

B. FRN Y.

C. FRN Z.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:10 PM

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An analyst evaluates the following information relating to floating-rate notes (FRNs) issued at par value that have

Question:

Floating-Rate Note X Y N Quoted Margin 0.40% 0.45% 0.55% Discount Margin 0.32% 0.45% 0.72%

Step by Step Answer:

To determine which FRN will be priced at a premium on the next reset date we need to compare the quo...View the full answer

Fixed Income Analysis

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