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Question 1 A floating-rate note has par value of $100, matures in 5 years, pays interest semi- annually based on 3-month LIBOR + 50 bps

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Question 1 A floating-rate note has par value of $100, matures in 5 years, pays interest semi- annually based on 3-month LIBOR + 50 bps and has a discount margin of 200 bps (2%). Assume that today 3-month LIBOR is 8%. What is the price of the floating-rate note today? Group of answer choices A. 93.11 B. 91.55 C. 94.21 D. None of the above

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