问题如下:
If a floating-rate note has a quoted margin of +70 bps and a required margin of +50 bps, the price of the note on its next reset date will be:
选项:
A.equal to par value.
B.greater than par value.
C.less than par value.
解释:
B is correct.
If the required margin is less than the quoted margin, the credit quality of the issue has increased and the price on the reset date will be more than par value.
题目没有看懂, the required margin is less than the quoted margin从哪里推出?