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QUESTION 7 BOA Issues 5200m in CMO. 40% of the issue is foster tranche with index -LIBOR (currently 1.5%) and margin:2. The remaining 60% is

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QUESTION 7 BOA Issues 5200m in CMO. 40% of the issue is foster tranche with index -LIBOR (currently 1.5%) and margin:2. The remaining 60% is inverse floater tranche that is designed to keep the total cost of financing constant. The next year BOR goes up to 3%. What would be the interest paid to the invee floater tranche investors Enter your answer in percent, but without percent sign O 35 4.5 O 2.5 1.5 0.5

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