Question: Consider the following CMO structure backed by 6% collateral: Tranche Par Amount Notional Amount Coupon Rate A $250,000,000 4.50% B $200,000,000 4.75% C $150,000,000 5.25%

Consider the following CMO structure backed by 6% collateral:

Tranche Par Amount Notional Amount Coupon Rate

A $250,000,000 4.50%

B $200,000,000 4.75%

C $150,000,000 5.25%

D $100,000,000 5.75%

IO ? 6.00%

What is the notional amount of the IO tranche?

Question 8 options:

$75,500,000

$97,666,666

$108,333,333

$125,500,000

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