Expected cash flow related to this debt issue

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FRN and Expected Cash Flows. A U. S. firm issues a three- year FRN with a face value of $ 250,000. The coupon is set at LIBOR plus 50 basis points and is paid annually. The coupon rate is set at the beginning of the year. The firm’s CEO notes that the one- year LIBOR rate is 2.2 percent. Calculate the year 1 expected cash flow related to this debt issue.

Reference no: EM13809612

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