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3. An investor is considering the purchase of a 2-year floating-rate note that pays interest semiannually. The coupon formula is equal to 6-month T-Bill rate

3. An investor is considering the purchase of a 2-year floating-rate note that pays interest semiannually. The coupon formula is equal to 6-month T-Bill rate plus 80 basis points quoted margin. The current value for 6-month T-bill rate is 5% (annual rate). The price of this note is 98.7068. What is the discount margin?

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