Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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through the model of a lottery with a high and a low outcome, argue whether a CDO made of central tranches (all tranches except AAA or Z) of a group of MBS’s can legitimately contain a AAA tranche that is comparable to those in the MBS’s. Explain the economics of why you believe they did contain AAA rated tranches.

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