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Basic Question 5 of 9

A floater resets its interest rate quarterly at three-month LIBOR plus 0.5%. It is being sold at a discount to par value. Its required margin is most likely ______ 0.5%.

A. higher than
B. equal to
C. lower than

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Lina

Lina

Learning Outcome Statements

calculate and interpret yield spread measures for floating-rate instruments

CFA® 2025 Level I Curriculum, Volume 4, Module 8.