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Suppose that the collateral of a market value CDO consists of the following three asset types: Asset Type Market Value Advance Rate Performing High-Yield Bonds

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Suppose that the collateral of a market value CDO consists of the following three asset types: Asset Type Market Value Advance Rate Performing High-Yield Bonds Rated Baa $90 million 0.85 Performing High-Yield Bonds Rated B $40 million 0.78 Performing High-Yield Valued Below Caa $30 million 0.71 In an overcollateralization test, what market value is used? Edit View Insert Format Tools Table

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