1.) Hammond Wealth Management Group purchased $50,000 par value of a 12-year, Floating Rate note. The bond pays its coupon quarterly and has a coupon rate of 3M Libor + 1.25%. Assuming 3M Libor was 0.75% as of the most recent reset date, what is the next Coupon Payment going to be?

2.) A $100,000 par value bond of a has a floating rate coupon of 6M Libor + 2.50%. Coupon is paid semi-annually (2x per year). Assuming 6M Libor was 0.30% as of the most recent reset date, what should the next coupon be equal to?

3.) Your firm owns $20,000,000 of Treasury Bonds. You wish to borrow money from a bank and pledge these bonds overnight in a reverse repo transaction. The current overnight repo rate is 0.10% You wish to borrow $10,000,000 of cash.

a. How much interest do you owe the bank the next day?

b. About how much in collateral market value should you send over to the bank?