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QUESTION BOA issues $100m in CMO. 30% of the issue is floater tranche with index -LIBOR (currently 2) and margin = 1%. The remaining 70%
QUESTION BOA issues $100m in CMO. 30% of the issue is floater tranche with index -LIBOR (currently 2) and margin = 1%. The remaining 70% is inversefone tranche that is designed to keep the total cost of financing constant. The next year UIBOR goes up to 4%. What would be the interest paid to the float tranche versions Enter your answer in percent but without percent sign. Mint is a short question, not many calculations needed O2 3 O OS
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