An Analyst Evaluates the Following Information Relating to Floating Rate

Multiple Choice

An analyst evaluates the following information relating to floating rate notes (FRns) is- sued at par value that have 3-month libor as a reference rate: $\begin{array} { l c c } \hline \text { Floating Rate Note } & \text { Quoted Margin } & \text { Discount Margin } \\\hline \mathrm { X } & 0.40 \% & 0.32 \% \\\mathrm { Y } & 0.45 \% & 0.45 \% \\\mathrm { Z } & 0.55 \% & 0.72 \% \\\hline\end{array}$ based only on the information provided, the FRn that will be priced at a premium on the next reset date is:

A) FRn x.
B) FRn Y.
C) FRn Z.