|
Tranche
|
Principal
|
Coupon Rate
|
|
A
|
$40,000,000
|
9.25%
|
|
B
|
30,000,000
|
10.00%
|
|
Z
|
30,000,000
|
11.00%
|
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? (State your answer as a percentage, e.g. 20.1%)