$$\begin{array} { c c r }
\text { Tranche } & \text { Principal } & \text { Caupan Rate } \
\text { A } & \$ 40,000,000 & \mathbf { 9 . 2 5 \% } \
\mathrm { B } & 30,000,000 & 10.00 \% \
Z & 30,000,000 & 11.00 \%
\end{array}$$
-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?

Question

$$\begin{array} { c c r } 
\text { Tranche } & \text { Principal } & \text { Caupan Rate } \
\text { A } & \$ 40,000,000 & \mathbf { 9 . 2 5 \% } \
\mathrm { B } & 30,000,000 & 10.00 \% \
Z & 30,000,000 & 11.00 \%
\end{array}$$
-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?

Quizplus · Accepted Answer

The Answer of $$\begin{array} { c c r } 
\text { Tranche } & \text { Principal } & \text { Caupan Rate } \
\text { A } & \$ 40,000,000 & \mathbf { 9 . 2 5 \% } \
\mathrm { B } & 30,000,000 & 10.00 \% \
Z & 30,000,000 & 11.00 \%
\end{array}$$
-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?

-A Mortgage Company Is Issuing a CMO with Three Tranches