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Business, 03.05.2021 15:00 joc223

Given the following information about a CMO: - $1 million of mortgage pool principal assigned to the floater class. $15 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% What is the coupon leverage L? Round your answer to two decimal points (e. g. if your answer is 1/3, write 0.33).

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Given the following information about a CMO: - $1 million of mortgage pool principal assigned to the...

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