A two-year floating rate note pays 6-month Libor plus 100 bp. The float is priced at 96
Fantastic news! We've Found the answer you've been seeking!
Question:
A two-year floating rate note pays 6-month Libor plus 100 bp. The float is priced at 96 percent of face value. The current 6-month Libor is 1.50%. Assume a 30/360 day count convention and evenly spaced periods. What is the discount margin for the float in basis points?
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date: