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Consider the following CMO structure backed by 6% collateral: Tranche Par Amount Notional Amount Coupon Rate A $250,000,000 4.50% B $200,000,000 4.75% C $150,000,000 5.25%
Consider the following CMO structure backed by 6% collateral:
Tranche Par Amount Notional Amount Coupon Rate
A $250,000,000 4.50%
B $200,000,000 4.75%
C $150,000,000 5.25%
D $100,000,000 5.75%
IO ? 6.00%
What is the notional amount of the IO tranche?
Question 8 options:
| $75,500,000 |
| $97,666,666 |
| $108,333,333 |
| $125,500,000 |
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