Suppose that coupon reset formula for a floating rate bond is 1 month LIBOR 220 basis points (a) What is the reference rate (b) What is the quoted margin (c) Suppose that on coupon reset date that 1 month LIBOR is 2 8 What will the coupon rate be for the period

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Suppose that coupon reset formula for a floating-rate bond is: 1-month LIBOR + 220 basis points. (a) What is the reference rate? (b) What is

Suppose that coupon reset formula for a floating-rate bond is: 1-month LIBOR + 220 basis points.

(a) What is the reference rate?

(b) What is the quoted margin?

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