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5. We are comparing the projected cash flows to different Tranche A's of the various CMOS described below. TRANCHE A Characteristics for Pool Characteristics CMO

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5. We are comparing the projected cash flows to different Tranche A's of the various CMOS described below. TRANCHE A Characteristics for Pool Characteristics CMO 1 CMO 2 CMO 3 WAC 10% 9% 9.5% WAM 360 360 340 PSA 100 300 50 Coupon Rate 8% 8% 8% Tranche A Principal $200,000 $100,000 $200,000 Total Principal $300,000 $300,000 $300,000 Next to each repayment profile below, identify to which CMO the Tranche A belongs and explain your answer. Your response should read, for example, "First Tranche A is the Tranche A from CMO 2 because ... Seegnd Tranche A is the Tranche A from CMO 3 because ...' (10 points). FIRST TRANCHE A Tranche A Cash Flow Pattern $2.500 52.000 51500 $1000 3500 1 51 101 151 201 251 Timelapsed SECOND TRANCHE A Tranche A Cash Flow Pattern 33.000 $2.000 Monty Payment 51.500 11 000 5500 301 SO 51 101 151 201 251 Time lapsed THIRD TRANCHE A Tranche A Cash Flow Pattern 54.100 14.000 1300 53.000 $2.000 $1.500 $1.000 1500 10 51 101 151 201 351 5. We are comparing the projected cash flows to different Tranche A's of the various CMOS described below. TRANCHE A Characteristics for Pool Characteristics CMO 1 CMO 2 CMO 3 WAC 10% 9% 9.5% WAM 360 360 340 PSA 100 300 50 Coupon Rate 8% 8% 8% Tranche A Principal $200,000 $100,000 $200,000 Total Principal $300,000 $300,000 $300,000 Next to each repayment profile below, identify to which CMO the Tranche A belongs and explain your answer. Your response should read, for example, "First Tranche A is the Tranche A from CMO 2 because ... Seegnd Tranche A is the Tranche A from CMO 3 because ...' (10 points). FIRST TRANCHE A Tranche A Cash Flow Pattern $2.500 52.000 51500 $1000 3500 1 51 101 151 201 251 Timelapsed SECOND TRANCHE A Tranche A Cash Flow Pattern 33.000 $2.000 Monty Payment 51.500 11 000 5500 301 SO 51 101 151 201 251 Time lapsed THIRD TRANCHE A Tranche A Cash Flow Pattern 54.100 14.000 1300 53.000 $2.000 $1.500 $1.000 1500 10 51 101 151 201 351

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