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- Imagine that you have $ 1 0 , 0 0 0 , 0 0 0 of notional principal from which floater and inverse floater

- Imagine that you have $ 10,000,000 of notional principal from which floater and inverse floater securities will be created. The underlying mortgages have a WAC of 5%. If the payment rule to the floater class is SOFR +0.6% and $ 6 M is the principal balance allocated to the floater class: - If SOFR is currently at 3%, what is the payment to the inverse floater class?

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