Consider the following CMO structure backed by 8% collateral:AppendixLO1 Tranche Par Amount (in millions) Coupon Rate (%)

Consider the following CMO structure backed by 8% collateral:AppendixLO1

Transcribed Image Text:

Tranche Par Amount (in millions) Coupon Rate (%) A $300 6.50 B 250 6.75 C 200 7.25 D 250 7.75 Suppose that a client wants a notional IO with a coupon rate of 8%. Calculate the notional amount for this notional 10.