Question: A ten-year floating-rate note (FRN) has coupons referenced to 3- month pound LIBOR, and pays coupon interest quarterly. Assume that the current 3-month LIBOR is

 A ten-year floating-rate note (FRN) has coupons referenced to 3- month

A ten-year floating-rate note (FRN) has coupons referenced to 3- month pound LIBOR, and pays coupon interest quarterly. Assume that the current 3-month LIBOR is 4 percent. If the risk premium above LIBOR that the issuer must pay is 12.5 basis points, the next period's coupon payment on a 1,000 face value FRN will be O 31.25. O 82.50. O 165.00. O 10.31. A ten-year floating-rate note (FRN) has coupons referenced to 3- month pound LIBOR, and pays coupon interest quarterly. Assume that the current 3-month LIBOR is 4 percent. If the risk premium above LIBOR that the issuer must pay is 12.5 basis points, the next period's coupon payment on a 1,000 face value FRN will be O 31.25. O 82.50. O 165.00. O 10.31

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