Can someone solve it using PV-FV mode in calci?
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Hello,
Please check this link for a question of discount margin (different question but with same concept)
Hope this helps!
assumed quoted margin to be coupon rate and discount margin ytm
now it is a simple Q of bond
PV 98 , FV 100, PMT 3.25, N 4, CPT I/Y = 3.79
subtract 3.79 from 2 (which is EURIBOR)to get 1.79 this is the discount margin = 1.79