CH20 IO_PO
1. Excel. Refer to the “CH20 IO_PO” tab in the Excel Workbook provided on the Web site. What is the return on the IO and PO at prepayment rates of 25 percent and 30 percent?
2. What is the role of the “scale” in structuring an F and IF structure?
3. Why are CMOs over collateralized?
CH20 IO_PO