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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 $ of notional principal from which floater and inverse floater securities will be created. The underlying mortgages have a WAC of If the payment rule to the floater class is SOFR and $ M is the principal balance allocated to the floater class: If SOFR is currently at what is the payment to the inverse floater class?
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