CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Suppose that the shifting interest percentage schedule of a senior-subordinated structure is as follows:

Supposing that there are prepayments in month 80 of $1 million, ______ is paid to the subordinated tranches.
A. $300,000
B. $400,000
C. $700,000
Explanation: Since month 80 is in the seventh year, 70% is paid to the senior tranche and 30% is paid to the subordinated tranche.

User Contributed Comments 0

You need to log in first to add your comment.