The coupon rate of a floating-rate note that makes payments in June and December is expressed as
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The coupon rate of a floating-rate note that makes payments in June and December is expressed as six-month MRR + 25 bps. Assuming that the six-month MRR is 3.00% at the end of June 20XX and 3.50% at the end of December 20XX, the interest rate that applies to the payment due in December 20XX is:
A. 3.25%.
B. 3.50%.
C. 3.75%.
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