Question: Consider the following CMO structure backed by 8% collateral Tranche Par Amount (in millions) Coupon Rate (%) $300 6.50 250 6.75 200 7.25 250 7.75

Consider the following CMO structure backed by 8% collateral Tranche Par

Consider the following CMO structure backed by 8% collateral Tranche Par Amount (in millions) Coupon Rate (%) $300 6.50 250 6.75 200 7.25 250 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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