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Use the following information to answer parts (a) and (b) below. Floaters A and B in the table below each has a par value of

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Use the following information to answer parts (a) and (b) below. Floaters A and B in the table below each has a par value of $100 and pays coupons semiannually. On a BEY basis, the 6-month LIBOR is now 4%. (a) Compute the simple margin of each floater. (5 marks) (b) What is the discount margin of each floater? Please show your calculations. (8 marks) Use the following information to answer parts (a) and (b) below. Floaters A and B in the table below each has a par value of $100 and pays coupons semiannually. On a BEY basis, the 6-month LIBOR is now 4%. (a) Compute the simple margin of each floater. (5 marks) (b) What is the discount margin of each floater? Please show your calculations. (8 marks)

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