1.A CMO is issued from a 200 mil. pool of mortgages. It has 4 tranches listed below. 12 million in losses are incurred in the pool of mortgages. (Assume no principal repayments have occurred.)

AAA-rated Tranche$140 million

A-rated Tranche$40 million

B-rated Tranche$10 million

Unrated Tranche$10 million

What is the loss rate on the AAA-rated tranche in percentage points? (5% would be "5.00".)

2.A CMO is issued from a 200 mil. pool of mortgages. It has 4 tranches listed below. 12 million in losses are incurred in the pool of mortgages. (Assume no principal repayments have occurred.)

AAA-rated Tranche$140 million

A-rated Tranche$40 million

B-rated Tranche$10 million

Unrated Tranche$10 million

What is the loss rate on the A-rated tranche in percentage points? (5% would be "5.00".)

3.A CMO is issued from a 200 mil. pool of mortgages. It has 4 tranches listed below. 12 million in losses are incurred in the pool of mortgages. (Assume no principal repayments have occurred.)

AAA-rated Tranche$140 million

A-rated Tranche$40 million

B-rated Tranche$10 million

Unrated Tranche$10 million

What is the loss rate on the B-rated tranche in percentage points? (5% would be "5.00".)

4.A CMO is issued from a 200 mil. pool of mortgages. It has 4 tranches listed below. 12 million in losses are incurred in the pool of mortgages. (Assume no principal repayments have occurred.)

AAA-rated Tranche$140 million

A-rated Tranche$40 million

B-rated Tranche$10 million

Unrated Tranche$10 million

What is the loss rate on the Unrated tranche in percentage points? (5% would be "5.00".)