#53: Intro to FI Valuation

Question 1

define quoted margin

Answer 1

“margin used to calculate the bond coupon payments” for FRN

Question 2

define the required margin

Answer 2

also called “discount rate” “margin required to return FRN to par value” (I/Y on calc”

Question 3

FRN and credit quality - how does it affect it?

Answer 3

if credit qual down, quoted required