A Two-Year Hoating-Rate Note Pays 6-Month Libor Plus 80 Basis $1.00 \%$

question 2

Multiple Choice

A two-year Hoating-rate note pays 6-month Libor plus 80 basis points. The Hoater is priced at 97 per 100 of par value. Current 6-month Libor is $1.00 \%$ . Assume a $30 / 360$ day-count convention and evenly spaced periods. The discount margin for the floater in basis points (bps) is closest to:

• A)180 bps
• B) 236 bps.
• C) 420 bps.

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