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