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Find the Yield to Maturity for This Floating Rate Note

Question 31

Multiple Choice

Find the yield to maturity for this floating rate note: The reset date is today; coupons are paid annually according to the formula (LIBOR + ¼ percent) ; since issuance,there has not been a change in the issuer's credit rating.The bond has ten years to maturity and LIBOR = 3.5 percent.


A) 3.5 percent
B) 4 percent
C) 3.75 percent
D) There is not enough information provided to make a determination.

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