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A Collateralized Mortgage Obligation (CMO) principal balance is $1,000,000,000. The pass-thru rate is 5.35%. The Weighted Average Coupon rate is 6.35%. The weighted Average Months
A Collateralized Mortgage Obligation (CMO) principal balance is $1,000,000,000. The pass-thru rate is 5.35%. The Weighted Average Coupon rate is 6.35%. The weighted Average Months is 350. The PSA is 90. The CMO (at the time the CMO is first created) is divided into 4 tranches (A, B,C, D), each with a par value of $250,000,000 and a 5.35% coupon rate.
Within how many months from the creation of the CMO will tranche C principal be totally paid?
- 30
- 55
- 207
- 350
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