You Answeredorrect AnswerA one-year floating-rate note pays 6-month Libor plus 119 bps.The floater is priced at96.93 per 100 of par value. Current 6-month Libor is 1.78%.Assume a 30/360 day-countconvention and evenly spaced periods. What is the annualdiscount margin for the floater in basis points?304.42440.31 margin of error +/- 1%First, find the semiannual coupon amount. Then find theyield on the bond given the price. Finally, figure out whatpart of the yield is the discount margin.

The information given is as follows:Time to maturity= 1 year6-Month Libor= 1.78%Quoted margin= 119…

Answered: You Answered orrect Answer A one-year…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan. Total Purchase Down Amount Monthly Payment Payments Number of Finance Deferred (Cash) Price Payment Financed Charge Payment Price $2,600 $188.69 18
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