What would be the interest paid to the inverse floater

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BOA issues $200m in CMO. 75% of the issue is floater tranche with index = LIBOR (currently 6%) and margin = 1%. The remaining 25% is inverse floater tranche that is designed to keep the total cost of financing constant. The next year LIBOR falls to 4%. What would be the interest paid to the inverse floater tranche investors?

Reference no: EM133109548

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