1. The real estate activities of firms that only use real estate as part of their business operations are commonly referred to as:

Real estate analysis

Corporate real estate

Business real estate

Real estate finance

2.

In a certain collateralized mortgage obligation (CMO) issue, $60,000 of senior securities (Tranche A), $30,000 of mezzanine securities (Tranche B), as well as $10,000 of junior securities are issued (Tranche C). The issuers overcollateralization is $10,000, and the total duration of the CMO is 5 years in the absence of prepayment. The coupon on the senior securities is 5%, the mezzanine 6%, and the junior tranche 9%. The average contractual interest rate on the underlying mortgage pool is 8%. What is the Weighted Average Coupon (WAC) for this issue?

6.0%

5.7%

6.7%

5.5%