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Question 3 (3 marks): Speed-Line ABS is a securitised vehicle comprising of automotive loans. The investment bank marketing the deal has promoted the asset
Question 3 (3 marks): Speed-Line ABS is a securitised vehicle comprising of automotive loans. The investment bank marketing the deal has promoted the asset with a base-case CPR of 22%. Assuming this is an accurate measure, show the amortisation and bond factor for the vehicle over the next 6-months. January February March April May June July Amortisation $ $650,000,000 Bond Factor % 0.0%
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