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 Note X Y N Quoted Margin 0 40 0 45 0 55 Discount Margin 0 32 0 45 0 72

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: Based only

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.

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

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