A mortgage company is issuing a CMO with three tranches, with the principal and coupon...
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Finance
A mortgage company is issuing a CMO with three tranches, with the principal and coupon rate given in the table below. When issued, the weighted average coupon on the CMO will be:
Tranche Principal Coupon Rate
A) $ 40,000,000 6.00 %
B) $ 30,000,000 10.00 %
Z) $ 30,000,000 12.00 %
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