Question: Consider a semiannual payment floating-rate security whose coupon rate is determined as: reference rate + 75 basis points Assume its term to maturity is 10

Consider a semiannual payment floating-rate security whose coupon rate is determined as:

reference rate + 75 basis points

Assume its term to maturity is 10 years and current price is 99.25. What is the discount margin of the floater if the initial reference rate is 5%?

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