Firstly,I’m sorry for my bad English.Hope u all understand what I’m saying^^
I just wanna ask about compute the coupon payment as below
A company has issued a floating-rate note with a coupon rate equal to the
three-month MRR + 65 bps. Interest payments are made quarterly on 31
March, 30 June, 30 September, and 31 December. On 31 March and 30 June,
the three-month MRR is 1.55% and 1.35%, respectively. The coupon rate for the
interest payment made on 30 June is:
A 2.00%.
B 2.10%.
C 2.20%.
The correct is C
But for my opinion.I was wrongly calculated when I understand ‘‘coupon rate for the
interest payment made on 30 June’’ so I take 30June 1.35% + 0.65% = 2.00%,and wrong
I don’t really know why take 31March 1.55% for calculation instead of 30June 1.35%.
because now we are calculating cp payment on June not March,so why take March MRR?
Can anyone help me explain
Thanks in advance.