Additionally, please answer the following questions about CMOs. For questions 8-11, assume there exists a tranche of a CMO with a total principle value of $80,000,000. This tranche is divided into $60,000,000 of floaters and $20,000,000 of inverse floaters. The pool is at a fixed rate of 8%. 8) If the floaters' coupon is set at LIBOR, how is the coupon set on the inverse floaters? 3/4LIBOR +4(X-3* LIBOR)=8% 3/4LIBOR + 1/4X-3/4LIBOR=8% 1/4X=8% X= 32% Inverse Floater Coupon is set at 32%- LIBOR 9) How does the duration of the inverse floater compare with the duration of an 8% fixed rate note of comparable maturity to the mortgage pool? | 10) At what rate is LIBOR implicitly capped based on you answer to (1)? 11) If the duration of the underlying mortgage pool is 6 years and an investor were to lever up their position in the inverse floater by 2.5-to-1, what would be the duration of their position?