Question: Based on the below table, which shows a $500 million senior-subordinate structured MBS with 1 senior bond class and 4 subordinate classes, answer the question.


Based on the below table, which shows a $500 million senior-subordinate structured MBS with 1 senior bond class and 4 subordinate classes, answer the question. Senior-Subordinated Structured MBS If the default losses on the collateral totaled $27 million, how much principal would tranche 3 have on the maturity date? [A] \$12 million [B] \$13 million [C] \$15 million [D] \$25 million Based on the below table, which shows a $500 million senior-subordinate structured MBS with 1 senior bond class and 4 subordinate classes, answer the question. Senior-Subordinated Structured MBS If the default losses on the collateral totaled $19 million, what tranches would absorb the loss? [A] only tranche 5 [B] only tranche 4 and 5 [C] only tranche 3 and 5 [D] tranche 3, 4, and 5
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