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Discount margin to value risky floater

SbSSbS L2 candidatePosts: 11 Associate

We add discount margin to all nodes of binomial interest rate tree to arrive at market value of risky floater.

Suppose we apply same analogy to fixed coupon bond and add constant spread to all nodes of binomial interest rate tree to arrive at market value of fixed coupon bond. Then in this case what would be the constant spread called?Is there any name to this spread?

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