Question: Please show me how to do it. Answer is B Tranche Principal Coupon Rate 9.25% 10.00% 1 1.00% A $40,000,000 30,000,000 30,000,000 A mortgage company

Please show me how to do it. Answer is B Tranche

Please show me how to do it. Answer is B

Tranche Principal Coupon Rate 9.25% 10.00% 1 1.00% A $40,000,000 30,000,000 30,000,000 A mortgage company is issuing a CMO with three tranches, with the principal and coupon rate given in the table above. What will be the weighted average coupon on the CMO when issued? (B) 19. (A) (B) (C) (D) 9.25% 10.00% 10.08% 11.00%

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