Question
A floating-rate note has par value of $100, matures in 5 years, pays interest semi-annually based on 3-month LIBOR + 50 bps and has a
A floating-rate note has par value of $100, matures in 5 years, pays interest semi-annually based on 3-month LIBOR + 50 bps and has a discount margin of 200 bps (2%). Assume that today 3-month LIBOR is 8%. What is the price of the floating-rate note today?
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The Handbook Of Professionally Managed Assets A Definitive Guide To Profiting From Alternative Investments
Authors: Keith Fevurly
1st Edition
143026019X, 978-1430260196
