Question
Consider a floating rate bond with maturity in 5 years with the principal of $200,000. The floating is LIBOR, coupons are paid semi-annually, and the
Consider a floating rate bond with maturity in 5 years with the principal of $200,000. The floating is LIBOR, coupons are paid semi-annually, and the next coupon will be paid in 6 months. The 6 months annual LIBOR rate is 1%. The bond is default-free. What should be the price of the bond? Select one: A. $200,995 B. $200,000 C. $201,000 D. $199,000 E. None of the above
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Strategic Public Finance
Authors: Stephen Bailey
1st Edition
0333922212, 978-033392221
