How do you calculate the discount margin of a floating rate bond using flat yield? What is the formula?
I am a co-author of that paper. You may want to check out FinancePy which is a beta version of a finance library where I have implemented the code for calculating the discount margin. Here is an example Jupyter notebook that reproduces (almost exactly) a Bloomberg example.
The underlying code is in
Contact me at firstname.lastname@example.org if you have any issues or questions regarding FinancePy.