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Suppose that a coupon pass-throughs are stripped into two classes: X-1 receives 20%of principal and and 60% interest. X-2 receives 80% principal and 20% interest.

Suppose that a coupon pass-throughs are stripped into two classes:

X-1 receives 20%of principal and and 60% interest.

X-2 receives 80% principal and 20% interest.

We know the coupon rate of the collateral is 10%. what is the synthetic coupon rat on class x-2?

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