- CFA Exams
- CFA Exam: Level I 2021
- Study Session 14. Fixed Income (1)
- Reading 44. Introduction to Fixed-Income Valuation
- Subject 6. Yield Measures for Floating-Rate Notes and Money Market Instruments
CFA Practice Question
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%.
B. equal to
C. lower than
A. higher than
B. equal to
C. lower than
Correct Answer: A
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