medium · Asset-Backed Securities collateral

An analyst is calculating the 'Base Rate' for a credit card series. The series has $850M in Class A bonds at 5.10%, $100M in Class B bonds at 6.50%, and a $50M subordinate piece at 9.00%. The servicing fee is 2.00%.

What is the Base Rate for the series?

  1. 5.435%
  2. 6.870%
  3. 9.435%
  4. 7.435%

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