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Please show any Financial calculator inputs. Question 3 Imagine that you have $10,000,000 of notional principal from which floater and inverse floater securities will be
Please show any Financial calculator inputs.
Question 3 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 LIBOR+60bp and $6M is the principal balance allocated to the floater class: If LIBOR is currently at 3%, what is the payment to the inverse floater classStep by Step Solution
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