Suppose that the principal assigned to the senior, mezzanine, and equity tranches is 70%, 20%, and 10%

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Suppose that the principal assigned to the senior, mezzanine, and equity tranches is 70%, 20%, and 10% for both the ABS and the ABS CDO in Figure 8.3. What difference does this make to Table 8.1?

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Question Posted: Jan 20, 2016 08:51 AM

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Suppose that the principal assigned to the senior, mezzanine, and equity tranches is 70%, 20%, and 10%

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Fundamentals of Futures and Options Markets

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