1. Construct a 30-year CMO using this mortgage pool as collateral. The pool has three tranches, where...

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1. Construct a 30-year CMO using this mortgage pool as collateral. The pool has three tranches, where tranche A offers the least protection against prepayment and tranche C offers the most protection against prepayment.

Tranche A of $50 million receives quarterly payments at 9 percent per year, tranche B of $100 million receives quarterly payments at 10 percent per year, and tranche C of $50 million receives quarterly payments at 11 percent per year. Diagram the CMO structure.

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