In regards to my floating rate note question earlier, would this be a suitable method. 1. Forecast the reference rate (a 10 year treasury in my case) over the life of the note using the forward rate curve 2. Estimate the future interest payments of the note using the forward rates from step 1. 3. Discount the cash flows from step 2 using the current treasury spot rate curve.

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In regards to my floating rate note question earlier, would this be a suitable method. 1. Forecast the reference rate (a 10 year treasury in my case) over the life of the note using the forward rate curve 2. Estimate the future interest payments of the note using the forward rates from step 1. 3. Discount the cash flows from step 2 using the current treasury spot rate curve.

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