1.Check ALL true statements about SPVs

A.SPV stands for Special Private Vehicle

B.SPV is set up to separate the risk of lenders and investors

C.If the lender goes bankrupt,the investor assets within an SPV are unprotected from the bankruptcy judgement

D.If an MBS goes bust, the lender is protected from investors' claims

2.Given the following information on a MPT, what is the anticipated total cash flow available to investors in year 2?

10 year FRM, fully amortizing, annual payments.

No prepayment

100 loans in the pool

Average starting balance of $350,000/loan

Mortgage rate 5%

0.5%Servicing fee