1. Given the following information on a MPT, what is the total cash flow available to investors in year 8?

• 10 year FRM, fully amortizing, annual payments.
• No prepayment
• 100 loans in the pool
• Average starting balance of $350,000/loan
• Coupon rate 5% (Mortgage rate 5%)
• Noservicing/guaranteefees

2. Given the following information on a MPT, what is servicing fee amount in year 3?

• 10 year FRM, fully amortizing, annual payments.
• No prepayment
• 100 loans in the pool
• Average starting balance of $350,000/loan
• Coupon rate 5% (Mortgage rate 5%)
• Servicingfeeof0.5%ofstartingoutstandingpoolbalance

3. Given the following information on a MPT, what is the outstanding balance in the pool at the end of year 4/beginning of year 5?

• 10 year FRM, fully amortizing, annual payments.
• 8% CPR
• 100 loans in the pool
• Average starting balance of $350,000/loan
• Coupon rate 5% (Mortgage rate 5%)
• Servicingfeeof0.5%ofstartingoutstandingpoolbalance

4. Given the following information on a MPT, what is the total amount ofinterestpaid to investors in year 9?

• 10 year FRM, fully amortizing, annual payments.
• 10% CPR
• 500 loans in the pool
• Average starting balance of $275,000/loan
• Coupon rate 4% (Mortgage rate 4%)
• Servicingfeeof0.5%ofstartingoutstandingpoolbalance

5. Imagine Bank A has a pool of mortgage assets that it wishes to remove from its balance sheet viasecuritization. Bank A creates a SPV called "Bank A MPT 2016.02" and sells the assets to this SPV, who then issues securities to investors.Assume 1 year later, Bank A faces financial problems and files for bankruptcy. Do Bank A's creditors have a claim on the assets of "Bank A MPT 2016.02"? Why or why not?

6. A MPT is issued on a pool of mortgages that have a WAC of 7.5%. The servicing fee on this pool is 40bp. The marketinterest rate on securities with similar risks is 8.5%.

(A) What is themaximumcoupon that the issuer can promise to investors who purchase securities issued on this pool of assets?

(B) If the market interest rate declined to 6.5%, would your answer increase to part A increase, decrease, or stay the same?

7.Assume you have two pools of mortgages that are identical in every way, the only difference being than Pool A has a 10% CPR, and the Pool B has a 20% CPR.Holding everything else equal, whichpool should have a higher NPV? Why?