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please help! thank you! the current answers are wrong. Suppose that a two-year FRN pays MRR plus 0.80%. Currently, MRR is 1.00%. The yield spread
please help! thank you! the current answers are wrong.
Suppose that a two-year FRN pays MRR plus 0.80%. Currently, MRR is 1.00%. The yield spread required by investors is 236 bps over the reference rate; DM=2.36%. The note makes semiannual payments. What is the price of this FRN using a par value of $100 ? $97.00 $98.85 $100.25 $101.26 $102.00 Question 15 0/1.5 points Suppose that a five-year FRN pays a quarterly coupon of three-month market reference rate (MRR) plus 1.25\%. Currently, MRR is 5.00%. The yield spread required by investors is 221 bps over the reference rate; DM=2.21%. What is the price of this FRN using a par value of $100 ? $94,47 $95.25 $96.00 $97.14 $99.85 Step by Step Solution
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