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Suppose that a four-year FRN (floating-rate note) pays three-month Libor plus a quoted margin of 1.00% on a quarterly basis. Currently, three-month Libor is 1.65%.

Suppose that a four-year FRN (floating-rate note) pays three-month Libor plus a quoted margin of 1.00% on a quarterly basis. Currently, three-month Libor is 1.65%. The discount margin is currently 0.90%. Calculate the price of the bond (DM < QM):

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