Question
A bullet structure Floating rate bond has a DM of 2.14%. The quoted margin is 1.40% while the current benchmark rate is equal to 0.50%.
A bullet structure Floating rate bond has a DM of 2.14%. The quoted margin is 1.40% while the current benchmark rate is equal to 0.50%. Given this information, what is the price of the bond per $100 par if the bond pays monthly and matures in 5 years?
A bullet structure FRN has a par value of $100, a coupon spread is 2.20% while the 6-month LIBOR rate is equal to 1.00%. Investors price in a discount spread of 0.80%. Given this information, what is the price of the bond if the bond pays semi-annually and matures in 10 years?
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
978-1119496496
