The Enron floaters spread for life is 46.06. The slight difference between our calculation and Bloombergs is likely due to rounding error. Note also that spread for life considers only the accretion/amortization of the discount/premium over the floaters remaining term to maturity and considers neither the level of the coupon rate nor the time value of money.   Adjusted Simple Margin The adjusted simple margin (also called effective margin) is an adjust- ment to spread for life. This adjustment accounts for a one-time cost of carry effect when a floater is purchased with borrowed funds. Suppose an investor has purchased $10 million of a particular floater. A lever- aged investor has a number of alternative ways to finance the position, the most common being via a repurchase agreement. Regardless of the     method selected, the investor must make a one-time adjustment to the floaters price to account for the cost of carry from the settlement date to next coupon reset date. Given a particular financing rate, a carry- adjusted forward price can be determined as of the next coupon reset date. Once the carry-adjusted price is determined, the floaters adjusted price is simply the carry-adjusted price discounted to the settlement date by the reference rate. As before, the reference rate is assumed to remain constant until maturity. Note the cost of carry adjustment is simply an adjustment to the purchase price of the floater. If the cost of carry is positive (negative), the purchase price will be adjusted downward (upward). A floaters adjusted price is calculated as below:   Adjusted price = P [(Couponrate)100- (P + AI )rf]w ------------------------------------------------------------------------------------------ [1+ (w)(rravg)] (4)     where     Coupon rate = current coupon rate of the floater (in decimal) P = market price (per $100 of par value) AI = accrued interest (per $100 of par value) rf = financingrate(e.g.,thereporate)(indecimal)