in basis points. To compute the adjusted simple margin for the Enron floater, we gather the following information from Exhibit 7.1. We use the adjusted price of 99.90031 for PA. There are 345 days between the settlement date (4/20/99) and the maturity date (3/30/00). Since the day count conven- tion is ACT/360, the maturity is 345/360 or 0.9583. The quoted margin of 45 basis points is obtained from the "INPUTS" box. Plugging this information into equation (5), we obtain the adjusted simple margin.   Adjustedsimplemargin= 100(100- 99.90031 )+ 45 100 - ------------------------------------------------------- 0.9583 = 55.458 basis points ------------------------ 99.90031   (6)     The adjusted simple margin from Bloomberg is 55.458 which is also located in the "MARGINS" box at the bottom of Exhibit 7.1.   Adjusted Total Margin The adjusted total margin (also called total adjusted margin) adds one additional refinement to the adjusted simple margin. Specifically, the adjusted total margin is the adjusted simple margin plus the interest earned by investing the difference between the floaters par value and the adjusted price. The current value of the reference rate (i.e., the assumed index) is assumed to be the investment rate. The adjusted total margin is calculated using the following expression: Floating-RateSecurities       Adjusted total margin 100(100- PA)     100     (7) = -------------------------------------- + Quoted margin + 100(100- PA)rravg Maturity --------- PA     The notation used is the same as given above.