If an investor purchased $15 million principal of this security and, in some month, the cash flow available to be paid to the security holders (after all fees are paid) is $12 million, how much is the investor entitled to receive?
What will be an ideal response?
The investor owns $15 million principal of the total principal of $464,927,576 . This represents $15,000,000 / $464,927,576 = 0.0322630895 or about 3.2263% of ownership. This ownership entitles the investor to 0.0322630895 × $12,000,000 = $387,157.07 .
Business
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