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You construct FL-IFL tranches with a fixed rate bond as its collateral. Par value of collateral is 50 million and the coupon rate of the

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You construct FL-IFL tranches with a fixed rate bond as its collateral. Par value of collateral is 50 million and the coupon rate of the bond is 6%. The structure for FL-IFL is as the following: Tranche Par Value Coupon Rate (%) FL 25 mil 2 + T-bill Rate IFL 25 mil 10 - T-bill Rate in month 100, we have the following information regarding the collateral: Balance Principal Payment Interest Payment Month 100 $14,824,845 $2.912 203 $74,124.23 Compute the following items in month 100 for FL and IFL: 1) beginning balances, 2) principal payments, and 3) interest payments. Assume the annual T-bill rate to be 3%. You construct FL-IFL tranches with a fixed rate bond as its collateral. Par value of collateral is 50 million and the coupon rate of the bond is 6%. The structure for FL-IFL is as the following: Tranche Par Value Coupon Rate (%) FL 25 mil 2 + T-bill Rate IFL 25 mil 10 - T-bill Rate in month 100, we have the following information regarding the collateral: Balance Principal Payment Interest Payment Month 100 $14,824,845 $2.912 203 $74,124.23 Compute the following items in month 100 for FL and IFL: 1) beginning balances, 2) principal payments, and 3) interest payments. Assume the annual T-bill rate to be 3%

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