Imagine an ABS that has been created from $200 million in underlying assets Thes

Question

Imagine an ABS that has been created from $200 million in underlying assets These assets have been carved out into 3 tranches. which are going to be sold to investors. Particular detal Question 9 Answer saved Marked out of 1.00 Tranche: P Flag questionSenior Facevalue: Rate: 5% 12% 25% Mezzanine $50 million Equity $25 million if there was a change in the value of the assets, and instantly $80 miltion of principal was wntten off what percentage of the I was written off, what percentage of the mezzanine tranche would surviv Answer revious page You are logged in as Ana Villanueva (Log out) FNCE4487.1171.A01 REG

Explanation / Answer

Foe 80 million loss, whole of equity and mezzanine will be wiped out. Also 5 million of senior tranche will be wiped. hence zero percent will survive
0%

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