Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A 10-year floating rate (annually paid) security selling for
101.32 pays a rate based on a reference rate plus 50 basis
points. Assume the current value of the reference rate is
7%. What is the discount margin?
O +30.94 bps
O -309.4 bps
O -30.94 bps
O +309.4 bps
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Transcribed Image Text:A 10-year floating rate (annually paid) security selling for 101.32 pays a rate based on a reference rate plus 50 basis points. Assume the current value of the reference rate is 7%. What is the discount margin? O +30.94 bps O -309.4 bps O -30.94 bps O +309.4 bps
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