Suppose that for a securitization with a shifting interest mechanism you are given the following information for some month:
subordinate interest = 25%
shifting interest percentage = 85%
regularly scheduled principal payment = $3,000,000
prepayments = $1,200,000
a. What is the senior prepayment percentage for the month?
b. How much of the $3,000,000 regularly scheduled principal payment is distributed to the senior class?
c. How much of the $1,200,000 is distributed to the senior class?