Suppose that for a securitization with a shift- ing interest mechanism you are given the following information for some month: subordinate interest = 25% shifting interest percentage = 85% regularly scheduled principal payment = $3,000,000 prepayments = $1,200,000 ==

a. What is the senior prepayment percentage for the month?

b. How much of the $3,000,000 regularly scheduled principal payment is distrib- uted to the senior class?

c. How much of the $1,200,000 is distributed to the senior class?

AppendixLO1