A two-year floating-rate note pays 6-month libor plus 100, Ask an Expert

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A two-year floating-rate note pays 6-month Libor plus 100 bps. The floater is priced at 96 per 100 of par value. Current 6-month Libor is 1.50%. Assume a 30/360 day-count convention and evenly spaced periods. What is the discount margin for the floater in basis points?

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Financial Management, Finance

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