Principal and coupon rate

Reference no: EM131016925

Tranche	Principal	Coupon Rate
A	$40,000,000	9.25%
B	30,000,000	10.00%
Z	30,000,000	11.00%

A mortgage company is issuing a CMO with three tranches, with the principal and coupon rate given in the table above. What will be the weighted average coupon on the CMO when issued? (State your answer as a percentage, e.g. 20.1%)

Reference no: EM131016925

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