Question: A 7-year floating rate note (FRN) pays 3-month LIBOR plus 115 basis points (bps). What is the price of the FRN if the current 3-month

  1. A 7-year floating rate note (FRN) pays 3-month LIBOR plus 115 basis points (bps). What is the price of the FRN if the current 3-month LIBOR is 50bps and the discount margin is 85bps? a. . At what discount margin would the FRN above be priced at par?

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