Floating-rate bonds Binomial Tree R45

[Snah]

Hi,
I am really struggling to get how to deal with this type of problems (for example, question 15 Reading 45 in the curriculum)
Could someone explain it to me?
Thanks in advance!
S

 

[S2000magician]

I wrote an article that may be of some help here: http://financialexamhelp123.com/valuing-floating-rate-bonds/

 

[Snah]

Very helpful, thank you so much

 

[S2000magician]

Good to hear. You’re quite welcome.