(1) Find the initial pool balance (hint: cash + pre-funding).

(2) Try to the Credit Enhancement of each tranche.

(3) Calculate the Expected Loss using BOTE method.

Class A-1 Class A2 Class A-3 Class A-4 Class B Class C Principal Balance: Note Rate Per Annum: Interest Accrual Method $70,680, 6.1713% $89.300,000 $75,620,000 $112,100,000 7.3200% $13,300,000 $4,750,000 6.5400% 7.1200% 8.4100% 9.0000% First Payment Date:... Maturity Date: Antioipated Ratings: 7/23/02 1/23/07 1/23/07 1/23/07 Moody's N/A N/A N/A N/A 8B Standard & Poor's Fitch IBCA Duff & Phelps A-1+ F1+/AAA D-1+