Question: Given the following information about a CMO: - $50 million of mortgage pool principal assigned to the floater class. $4 million assigned to the inverse

Given the following information about a CMO:

- $50 million of mortgage pool principal assigned to the floater class. $4 million assigned to the inverse floater class.

- Floater class coupon rule: LIBOR + 0.2%

- Inverse floater class coupon rule: 12.5% - L x LIBOR

- LIBOR in the first month is 3%

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