Question: Consider the following CMO structure backed by 8 collateral Tranche Par Amount

Consider the following CMO structure backed by 8% collateral:
Tranche 
Par Amount (in millions) 
Coupon Rate (%) 
A 
$300 
6.50% 
B 
$250 
6.75% 
C 
$200 
7.25% 
D 
$250 
7.75% 
Suppose that a client wants a notional IO with a coupon rate of 8%. Calculate the notional amount for this notional IO.

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  • CreatedAugust 22, 2015
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