Question: Bond XYZ has 6 years to maturity, pays a coupon based on the 3-month T-bill rate plus 180 bps, makes coupon payments quarterly, and

Bond XYZ has 6 years to maturity, pays a coupon based on the 3-month T-bill rate plus 180 bps, makes coupon payments quarterly, and is currently quoted at a price of 87. The 3-month T-bill rate is currently 5%. What is the bond's discount margin?

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