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FRN - Calculation of Discount Margin

Given the price for an FRN, the discount margin can be determined for both pricing approaches as a decomposition of the computed yield to maturity. That is, we first use a numerical search technique to solve for ym based on either of the FRN equations for equal coupon rates, and then infer the discount margin as:

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Conversely, given the discount margin for an FRN, the market price can be determined using either of the FRN equations for equal coupon rates, and a yield to maturity then computed as:

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