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Suppose that for a securitization with a shifting interest mechanism you are given the following information for some month: subordinate interest = 20% shifting interest

Suppose that for a securitization with a shifting interest mechanism you are given the following information for some month: subordinate interest = 20% shifting interest percentage = 85% regularly scheduled principal payment = $2,000,000 prepayments = $1,000,000 a. What is the senior prepayment percentage for the month? b. How much of the $2,000,000 regularly scheduled principal payment is distributed to the senior class? c. How much of the $1,000,000 is distributed to the senior class?

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