I am trying to understand how YTM's are calculated for floating rate notes. I have had a go at calculating it and I am always a few bps off for every FRN I try to calculate. Does anyone have any ideas as to what I could be doing wrong?
*I am looking at a run sheet that I get from my advisory network.
Last price $101.25 Quoted margin 0.89% + 2.8% = 3.69% Quarterly payments
PMT = 3.69/4 = 0.9225 FV = 100 PV = -101.21 n = 4
I get the answer 2.16%
But the run sheet says 2.38%. What would I be missing?