Consider the following floater: Maturity= 6 years Coupon rate = reference rate plus 80 basis point resets

Question:

Consider the following floater:

Maturity= 6 years Coupon rate = reference rate plus 80 basis point resets every six months Maturity value = \($100\) Market price = \($99.1381\) Reference rate = 10%

Using an Excel spreadsheet, calculate the discount margin.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Fixed Income Analytics

ISBN: 9780470572139

2nd Edition

Authors: Steven V. Mann, Frank J. Fabozzi

Question Posted: