medium · Asset-Backed Securities
A credit card master trust series has a portfolio yield of 19.5%, a charge-off rate of 5.0%, a servicing fee of 2.0%, and a weighted average coupon (WAC) on the issued bonds of 4.5%.
What is the monthly excess spread (ES) generated by this series expressed as an annualized percentage?
- 12.5%
- 15.0%
- 10.0%
- 8.0%
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