A Special Purpose Entity Issues Asset-Backed Securities in the Following

Multiple Choice

a special purpose entity issues asset-backed securities in the following structure. $\begin{array} { l c } \text { Bond Class } & \text { Par Value ( } € \text { millions) } \\\hline \text { A (senior) } & 200 \\\text { B (subordinated) } & 20 \\\text { C (subordinated) } & 5 \\\hline\end{array}$ at which of the following amounts of default in par value would Bond Class a experience a loss?

A) €20 million
B) €25 million
C) €26 million