1. MaGAP Inc issued a Floating Rate Bond,paying semi-annual couponsat the rate of (i_c/2) = [ref rate + 120 BPs]/2. The face value of the bond is $1000 and the current reference rate is 10.8%. The remaining time to maturity is 8 years (16 coupons) and the current market price of the bonds is P = $905.53.

1. Currently, each coupon is expected to pay ($)

1. 108
2. 120
3. 60
4. 54

2 points

QUESTION 6

1. The YTM(based on the current assumed cash flows) of the above floater is %

1. 12%
2. 13%
3. 14%
4. 15%

2 points

QUESTION 7

1. The above floating rate bond is currently trading at the annual EffectiveMargin, (in BPs) of

1. 320
2. 22
3. 120
4. 196