Question: Consider the following Asset Backed Security ( ABS ) . Suppose that the principals assigned to the senior, mezzanine, and equity tranches for the ABS,

Consider the following Asset Backed Security (ABS). Suppose that the principals assigned
to the senior, mezzanine, and equity tranches for the ABS, the ABS CDO 1 and the ABS
CDO 2 are as in figure 1 expressed as percent of the total cash flows of the security

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