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An investor is considering the purchase of a floating rate note with 7 years left until maturity that pays interest quarterly. The coupon formula is

An investor is considering the purchase of a floating rate note with 7 years left until maturity that pays interest quarterly. The coupon formula is 3-month SOFR plus 100 basis points. At the time of purchase the current value for 3-month SOFR is 4% (annual rate), and the price of the note is 92.75. Calculate the discount margin on the note.

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