hard · CFA Level I fixed-income
A Floating Rate Note (FRN) issued by Titan Dynamics pays a quarterly coupon of 3-month MRR + 80 bps.
If the note is currently trading at a discount to par, which of the following is most likely true?
- The quoted margin has increased since issuance.
- The reference rate (MRR) has fallen below the floor.
- The discount margin is greater than 80 bps.
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More CFA Level I fixed-income practice
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