Calculate amount of first coupon payment your organization, Financial Management

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Your firm has presently issued five year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4%. What is the amount of first coupon payment your organization will pay per U.S. $1,000 of face value, whether six-month LIBOR is currently 7.2%?

Solution: 0.5 x (.072 + .0025) x $1,000 = $37.25.

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