Suppose that the principal assigned to the senior mezzanine


Suppose that the principal assigned to the senior, mezzanine, and equity tranches for the ABSs and ABS CDO in Figure 6.4 is 60%, 30%, and 10% instead of 75%, 20% and 5%. How are the results in Table 6.1 affected?

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Financial Management: Suppose that the principal assigned to the senior mezzanine
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