Question: A two-year floating-rate note pays six-month Libor plus 80 bps. The floater is priced at 97 per 100 of par value. The current six-month MRR

A two-year floating-rate note pays six-month Libor plus 80 bps. The floater is priced at 97 per 100 of par value. The current six-month MRR is 1.00%. Assume a 30/360 day-count convention and evenly spaced periods. The discount margin for the floater in basis points is closes to:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

A two-year floating-rate note pays six-month Libor plus 80 bps. The floater is priced at 97 per 100 of par value. The current six-month MRR is 1.00%. Assume a 30/360 day-count convention and evenly...

Q:

A 5-year floating-rate note pays 6-month Libor plus 80 bps. The floater is priced at 97 per 100 of par value. Current 6-month Libor is 1.00%. Assume a 30/360 day-count convention and evenly spaced...

Q:

A 2%, 3-year US Treasury is selling at 100.25 . The 5% , 3-year IBM is selling at 100.65. Both bonds pay interest semi-annually. The G-spread in basis points on the IBM bond is closest to a. 264 bps....

Q:

A 3-year floating-rate note pays 6-month Libor plus 140 bps. The floater is priced at 97 per 100 of par value. Current 6-month Libor is 1.00%. Assume a 30/360 day-count convention and evenly spaced...

Q:

Question: A two-year floating-rate note pays 6-month Libor plus 100 bps. The floater is priced at 96 per 100 of par value. Current 6-month Libor is 1.50%. Assume a 30/360 day-count convention and...

Q:

A two-year floating-rate note pays 6-month Libor plus 100 bps. The floater is priced at 96 per 100 of par value. Current 6-month Libor is 1.50%. Assume a 30/360 day-count convention and evenly spaced...

Q:

A 3-year floating-rate note pays 6-month Libor plus 140 bps. The floater is priced at 97 per 100 of par value. Current 6-month Libor is 1.00%. Assume a 30/360 day-count convention and evenly spaced...

Q:

A two-year floating-rate note pays 6-month Libor plus 100 bps. The floater is priced at 96 per 100 of par value. Current 6-month Libor is 1.50%. Assume a 30/360 day-count convention and evenly spaced...

Q:

A one - year floating - rate note pays 6 - month Libor plus 9 7 bps . The floater is priced at 9 8 . 1 7 per 1 0 0 of par value. Current 6 - month Libor is 1 . 8 3 % . Assume a 3 0 / 3 6 0 day -...

Q:

A one-year floating-rate note pays 6-month Libor plus 112 bps. The floater is priced at 98.83 per 100 of par value. The current 6-month Libor is 1.88%. Assume a 30/360 day-count convention and evenly...

Q:

Gable Company manufactures wallets from fabric. In 2013, Gable made 2,160,000 wallets using 1,600,000 yards of fabric. In 2013, Gable has capacity to make 2,448,000 wallets and incurs a cost of $...

Q:

Create a PowerPoint Presentation in which you need to developa Strategic Plan for a Small Company: Address the following: Develop an IS Plan for Bobs Bicycle Sports Shop Use the Porter Value Chain...

Q:

What are the statutory defenses to liability for price discrimination? Cost justification and meeting a competitor's prices. Meeting a competitor's prices and changing market conditions. Cost...

Q:

6,7,8 6. Two children are on a merry-go-round. Child A, mass 2M, is standing a distance 3R from the center. Chilo. B, mass 3M, is standing a distance 4R from the center. Find the ratio of the moment...

Q:

(LO 9-3) Match the following tax KPIs to one of these areas: Tax sustainability Tax efficiency/effectiveness Tax KPI 1. Number of company tax audits closed and significance of assessment over time....

Q:

(LO 9-3) Analysis: In your opinion, which of the four general categories of tax KPIs mentioned in the text would be most important to the CEO? Support your opinion.

Q:

(LO 9-4) Analysis: Assume that a company has the option of staying in a tax jurisdiction with an effective tax rate of 20 percent or moving to a different location where the effective tax rates are...