Consider a CMBS backed by a 80% LTV loan of a $50,000,000 office building. The loan...
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Consider a CMBS backed by a 80% LTV loan of a $50,000,000 office building. The loan is interest only with an 8% mortgage rate issued for 3 years with monthly payments. The CMBS is issued with 37 5% subordination with a coupon rate on the senior tranche equal to 5% and coupon rate on the junior tranche equal to 7%. An interest only residual carrying no principal will be issued as well. Assume no default occurred. In month 35, how much did the residual tranche receive? Consider a CMBS backed by a 80% LTV loan of a $50,000,000 office building. The loan is interest only with an 8% mortgage rate issued for 3 years with monthly payments. The CMBS is issued with 37 5% subordination with a coupon rate on the senior tranche equal to 5% and coupon rate on the junior tranche equal to 7%. An interest only residual carrying no principal will be issued as well. Assume no default occurred. In month 35, how much did the residual tranche receive?
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Related Book For
Fixed Income Securities Valuation Risk and Risk Management
ISBN: 978-0470109106
1st edition
Authors: Pietro Veronesi
Posted Date:
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