How much of the $3,000,000 regularly scheduled principal payment is distributed to the senior class?
What will be an ideal response?
If the senior percentage is 75% and the scheduled principal payment is $3 million, the senior bond class will get 0.75 × $3,000,000 = $2,250,000 and the subordinated bond class will get $3,000,000 – $2,250,000 = $750,000 (or 0.25 × $3,000,000 = $750,000).
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