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 9%. What is the price of the floating-rate note today?
Group of answer choices
94.35
91.55
92.81
94.21
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The Structural Foundations Of Monetary Policy
Authors: Michael D. Bordo, John H. Cochrane, Amit Seru
1st Edition
0817921346, 978-0817921347
