Question: Consider a 7-year semiannual payment floating-rate security whose coupon rate is determined as: reference rate + 45.5 basis points The current reference rate is 5%

Consider a 7-year semiannual payment floating-rate security whose coupon rate is determined as: reference rate + 45.5 basis points The current reference rate is 5% and bonds price is 97.25. (1) What is the current coupon rate? (3 points) (2) What is the required yield of the floating-rate bond? (5 points) (3) What is the discount margin of the floating-rate bond? (2 points)

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