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I think I can clean up my question a bit: When the reset occurs the floating rate bond must be priced at par .. why is this ? Is it because the rate will change and thus the coupon will change and not just the discount factor ?

Hi David, I don't fully understand how to value a plain vanilla swap as a fix rate and floating rate bond. In your Youtube video, for the floating rate bond you price it as PV (1st coupon + notional). Why don't you take into account the other floating rate coupons that take place during the life...