1. You are an investor in the Class A or Class B tranche. All you know about...

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1. You are an investor in the Class A or Class B tranche. All you know about the underlying risk/return characteristics of the pool is that the WAC is the risk free rate + 4%. What is your optimal class size and class interest rate, given what you know.

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Elements Of Structured Finance

ISBN: 9780195179989

1st Edition

Authors: Ann Rutledge, Sylvain Raynes

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