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Approximate duration of the floating rate note

A money markets desk holds a floating-rate note with an eight-year maturity. The interest rate is floating at three-month LIBOR rate, reset quarterly. The next reset is in one week. What is the approximate duration of the floating rate note?

A. 8 years

B. 4 years

C. 3 months

D. 1 week

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Finance Basics: Approximate duration of the floating rate note

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Approximate duration of the floating rate note

Reference No:- TGS0673660

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the net gain or loss on sale

Q : Calculate the value of a non-callable ten-year bond

Q : What is the projected production for august

Q : Include a credit to what account

Q : Approximate duration of the floating rate note

Q : What was the actual selling price of quick bricks bricks

Q : Determine firm-s total cash receipts in july

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Approximate duration of the floating rate note

Reference No:- TGS0673660

Recent Questions Asked Finance Basics

Q : What is the net gain or loss on sale

Q : Calculate the value of a non-callable ten-year bond

Q : What is the projected production for august

Q : Include a credit to what account

Q : Approximate duration of the floating rate note

Q : What was the actual selling price of quick bricks bricks

Q : Determine firm-s total cash receipts in july

Q : What amount should the investment

Q : Calculate direct material cost per unit of finished product

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