medium · Asset-Backed Securities
A credit card master trust series has a portfolio yield of 19.5%, a servicing fee of 2.0%, and a weighted average bond coupon of 5.5%.
If the annualized charge-off rate is 4.0%, what is the current excess spread?
- 10.0%
- 12.0%
- 8.0%
- 14.0%
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