A one$-$year floating$-$rate note pays $6-$month Libor plus $119$ bps$.$

The floater is priced at

$96\mathrm{.}93$ per $100$ of par value, Current $6-$month Libor is $1\mathrm{.}78\%,$

Assume a $30/360$ day$-$count

convention and evenly spaced periods. What is the annual discount margin for the floater in basis points?

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orrect Answer

$440\mathrm{.}31$ margin of error $\frac{+}{1}\%.$ handwritten asnwer step by step