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Hello Good day, subject is Fixed Income Investment. Kindly show workings and formulae used. Thanks in advance. b) Suppose that coupon reset formula for a

Hello Good day, subject is Fixed Income Investment.

Kindly show workings and formulae used. Thanks in advance.

image text in transcribed

b) Suppose that coupon reset formula for a floating-rate bond is: 1 -month LIBOR +275 basis points. (i) Determine the reference rate instrument. (ii) Estimate the quoted margin. (iii) Suppose that on a coupon reset date that 1-month LIBOR is 2.85\%. Compute the coupon rate be for the period

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