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Business, 16.04.2020 23:16 sdonachy7

A CMO is created with one Floater and one Inverse Floater class. The CMO is backed by a mortgage pool of which, at origination, the Floater class holds 90 million in principal and the Inverse Floater class holds 70 million in principal. At origination, the floater class has a coupon rate of 6% and the inverse floater class has a coupon rate of 3%. What is the collateral's coupon rate (the mortgage pool's WAC)

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