Libor at the last coupon reset for the bond

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Question: You have purchased $5, 000, 000 (par amount) of a floating rate bond that pays interest at a fixed spread of 80% above 6-month LIBOR. If 6-month LIBOR at the last coupon reset for this bond was 1.25%, and the applicable period is 184 days, the amount of interest you will receive on the next coupon payment date is closest to:

$103, 924

$102, 500

$51, 670

$51, 250

Reference no: EM131786832

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