Your firm has just issued five year floating rate notes indexed to six month U S dollar LIBOR plus 1 4 percent What is the amount of the first coupon payment your firm will pay per U S $1,000 of face value, if six month LIBOR is currently 7 2 percent ...

Index rate multiply with the addition of ...

Your firm has just issued five-year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4 percent.

Question:

Your firm has just issued five-year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4 percent. What is the amount of the first payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is currently 7.2 percent?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...