Quoted margin measurement

Spread duration Measuring the price sensitivity to change of quoted margin, maintaining a fixed reference rate. 

There are several drawbacks of the discount margin as a measure of potential return from holding a floater. First and most obvious, the measure assumes the reference rate will not change over the security s life. Second, the price of a floater for a given discount margin is sensitive to the path that the reference rate takes in the future except in the special case when the discount margin equals the quoted margin. 

You will have to estimate the error inherent in reading scales, as described at the beginning of this chapter, and the evaluation is the place to discuss the effect these measurement errors might have on the validity of the data and conclusions you can draw from them. In the example of a thermometer with 1 °C calibration marks, you can quote values to the nearest 0.5°C. The actual effect of this margin of error on confidence levels will depend on the magnitude of the temperature being measured. When reading a low temperature of, say, 5.0 °C, plus or minus... 

---