I did screwup on this one too 
Compute the coupon payment for a quarterly pay $1,000,000, LIBOR + 150 basis points floating-rate note whose interest is calculated using the act/360 daycount convention. At the beginning of the quarter LIBOR was fixed at 7.0% and the quarter has 92 days. a. $17,888.89 b. $21,250.00 c. $21,722.22 d. $42,500.00 - Dinesh S
Is is not C - $21,722.22?
C?
C?
how did you guys get C? Would you mind sharing your calculations?
Correct answer is C (.07 + .015)($1,000,000) x (92/360) = $21,722.22
LIBOR + 150 bp = 7 + 1.5 = 8.5% 1,000,000 x 8.5% x 92/360