Question: Transit Corporation has just issued a CMO. The CMO has two tranches - Tranche A has a principal value of $ 7 2 million and
Transit Corporation has just issued a CMO. The CMO has two tranches Tranche A has a principal value of
$ million and Tranche B has a principal value of $ million. Each of these tranches has annual
coupon rate. If at the end of the first year, the corporation receives total cash flows of $ million, how
much will be paid to Tranche A investors in million dollars
Please only provide your answer to two decimal places in terms of millions of dollars please do not show the $ sign in the
answer. eg if the answer is $ million, enter
Answer:
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