Question: MaGAP Inc issued a Floating Rate Bond, paying semi-annual coupons at the rate of (i c /2) = [ref rate + 120 BPs]/2. The face

  1. MaGAP Inc issued a Floating Rate Bond,paying semi-annual couponsat the rate of (ic/2) = [ref rate + 120 BPs]/2. The face value of the bond is $1000 and the current reference rate is 10.8%. The remaining time to maturity is 8 years (16 coupons) and the current market price of the bonds is P = $905.53.

  1. Currently, each coupon is expected to pay ($)

  1. 108
  2. 120
  3. 60
  4. 54

2 points

QUESTION 6

  1. The YTM(based on the current assumed cash flows) of the above floater is %

  1. 12%
  2. 13%
  3. 14%
  4. 15%

2 points

QUESTION 7

  1. The above floating rate bond is currently trading at the annual EffectiveMargin, (in BPs) of

  1. 320
  2. 22
  3. 120
  4. 196

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