medium · Asset-Backed Securities

In healthcare receivables ABS, a hospital billed $1,000 for a procedure. The expected insurance reimbursement after contractual adjustments is $400.

If the trust applies an 80% advance rate to the Net Realizable Value (NRV), how much cash is advanced to the provider?

  1. $400
  2. $320
  3. $500
  4. $800

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