Suppose that a four-year FRN pays three-month Libor plus a quoted margin of 1.00% on a quarterly basis. Currently, three-month Libor is 1.55%. The discount margin is currently 1.20%. Calculate the price of the bond (DM > QM):

10. Calculate the 3y1y implied forward rate (IFR_6,2). A=6, B=8, B-A=2 six month periods. Assume the three-year spot rate z₆ is 2.983% and the four-year spot rate z₈ is 2.883%, assuming semiannual compounding: