If libor is currently at 3 what is the payment to the


Imagine that you have $10,000,000 of notional principal from which floater and inverse floater securities will be created. The underlying mortgages have a WAC of 5%. If the payment rule to the floater class is LIBOR+60bp and $6M is the principal balance allocated to the floater class:

• If LIBOR is currently at 3%, what is the payment to the inverse floater class? Round to the nearest dollar. please show me all steps.

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Financial Management: If libor is currently at 3 what is the payment to the
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