Funding sources listed below has highest withdrawal risk

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1. Which one of the funding sources listed below has the highest withdrawal risk?

a. NOW accounts

b. passbook savingscc

c. demand deposits

d. retail CDs

e. money market deposit accounts

2. A CMO has two tranches, Tranche A and Tranche B, both with $100 million face value and 7.9% annual coupon rate. If at the end of the first year, the CMO trustee receives total cash flows of $22 million, how much will be paid to Tranche A investors (in million dollars)?

Reference no: EM131952834

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