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1210973.1 null W DegreeWorks by Su Sign in to Office 365 Sign in ) STARRSr " NVC sdekick Sidekick 4G " Horne / Log h-W: E] Tai& Limousin G This monster floor c- The Le QUESTION 4 Consider a CMBS with the following characteristics: . Backed by S20M mortgages, 7% interest, 5-yr maturity, 10 annual payments, no servicer fee . There are three tranches issued: -$13M Tranche A (Senior Investment Grade CMBS) with coupon rate 5% -S7M Tranche B (Junior/ Non-investment Grade CMBS) with coupon rte 6%-10 residual tranche (no extra collateral, but collects extra interest) Assume no defaults. What is the cash flow to Tranche A in year 1? 1210973.1 null W DegreeWorks by Su Sign in to Office 365 Sign in ) STARRSr " NVC sdekick Sidekick 4G " Horne / Log h-W: E] Tai& Limousin G This monster floor c- The Le QUESTION 4 Consider a CMBS with the following characteristics: . Backed by S20M mortgages, 7% interest, 5-yr maturity, 10 annual payments, no servicer fee . There are three tranches issued: -$13M Tranche A (Senior Investment Grade CMBS) with coupon rate 5% -S7M Tranche B (Junior/ Non-investment Grade CMBS) with coupon rte 6%-10 residual tranche (no extra collateral, but collects extra interest) Assume no defaults. What is the cash flow to Tranche A in year 1

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