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Pricing FRNs. A four-year French floating-rate note pays 3-month EuriBOR (Euro Interbank Offered Rate, an index produced by the European Banking Federation) plus 1.25%. The

Pricing FRNs.

A four-year French floating-rate note pays 3-month EuriBOR (Euro Interbank Offered Rate, an index produced by the European Banking Federation) plus 1.25%.

The floater is priced at 98 per 100 of par value.

Calculate the discount margin for the floater assuming current 3-month EuriBOR is 2%. (Keep four decimals when expressed in percentage)

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