Question: Using the data in Exhibit 19.12, explain what a CAR is in terms of an asset- backed security. Why is the spread (0.48 percent) on

Using the data in Exhibit 19.12, explain what a CAR is in terms of an asset- backed security. Why is the spread (0.48 percent) on the Class A security lower than the spread (0.63 percent) on the Class B security in terms of the features of the two instruments?

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