medium · Asset-Backed Securities
A FFELP loan originated in 2007 has a Special Allowance Payment (SAP) statutory spread target of Commercial Paper (CP) + 2.34% for loans in repayment.
If the borrower is currently paying a fixed rate of 6.80% and the CP rate is 4.50%, what is the SAP rate paid to the trust?
- 0.19%
- 2.34%
- 0.04%
- 2.30%
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