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Question 9 Consider a CMBS backed by a 8 0 % LTV loan of a $ 5 0 , 0 0 0 , 0 0
Question Consider a CMBS backed by a LTV loan of a $ office building. The loan is interest only with an mortgage rate issued for years with monthly payments. The CMBS is issued with subordination with a coupon rate on the senior tranche equal to and coupon rate on the junior tranche equal to An interest only residual carrying no principal will be issued as well. Assume no default occurred. In month how much did the residual tranche receive?
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