Question
Consider a $1 million semiannual pay, floating rate issue where the rate is reset on January 1 st and July 1 st each year. The
Consider a $1 million semiannual pay, floating rate issue where the rate is reset on January 1st and July 1st each year. The reference rate is 6-month LIBOR, and the stated margin is +1.25%. If 6-month LIBOR is 6.5% on July 1st, what will the next semiannual coupon be in this issue?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
