Question: A company has issued a floating-rate note with a coupon rate equal to the three-month Libor + 65 bps. Interest payments are made quarterly on

A company has issued a floating-rate note with a coupon rate equal to the three-month Libor + 65 bps. Interest payments are made quarterly on 31 March, 30 June, 30 September, and 31 December. On 31 March and 30 June, the three-month Libor is 1.55% and 1.35%, respectively.

a) What would be the coupon rate for the interest payment on 30 June?

b) What would be the dollar amount of the June 30 payment?

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