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A CMO is being issued with three tranches, with the principal and coupon rate given in the table below. When issued the weighted average coupon
A CMO is being issued with three tranches, with the principal and coupon rate given in the table below. When issued the weighted average coupon on the CMO will be 6.425%. What is the coupon rate for tranche A?
Tranche | Principal | Coupon Rate |
A | $50,000,000 | ?% |
B | $30,000,000 | 6% |
Z | $20,000,000 | 10% |
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