Question
The $100 million bond pool with an expected yield of 15% is divided into tranches: senior 25 million, mezzanine 50 million and junior 25 million,
The $100 million bond pool with an expected yield of 15% is divided into tranches: senior 25 million, mezzanine 50 million and junior 25 million, yielding 10%, 15% and 20% returns, respectively. How much will each tranche receive if no bonds are overdue? How much does the tranche receive if the interest income is $ 11 million?
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A Modern Credit Rating Agency The Story Of Moodys
Authors: Daniel Cash
1st Edition
0367427443, 978-0367427443
