ACMO is being issued with 2 tranches and a residual (same set-up as the previous question: Tranche A has 6,000,000 in principal and a 4.50% coupon Tranche Bhas 5,000,000 in principal and a 5.00% coupon The mortgages backing the security issued are FRM at a mortgage rate of 5.10% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. The residual owns no principal at origination. What is the starting pool balance for Tranche A Investors in year 27 (Note: same as the ending pool balance for Tranche A investors in year 1) 06.180,341.21 4579.523.44 5,760,753.01 5,075,948.54 QUESTION 11 Suppose you're an Investor that's looking to earn the highest absolute profit/ return and not very concerned about risk of loss or ongoing cash flows. Which type of CMO would you be most interested in owning! Tranche A Tranchez Companion tranche of a PAC Inverse Floater Class ACMO is being issued with 2 tranches and a residual (same set-up as the previous question: Tranche A has 6,000,000 in principal and a 4.50% coupon Tranche Bhas 5,000,000 in principal and a 5.00% coupon The mortgages backing the security issued are FRM at a mortgage rate of 5.10% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. The residual owns no principal at origination. What is the starting pool balance for Tranche A Investors in year 27 (Note: same as the ending pool balance for Tranche A investors in year 1) 06.180,341.21 4579.523.44 5,760,753.01 5,075,948.54 QUESTION 11 Suppose you're an Investor that's looking to earn the highest absolute profit/ return and not very concerned about risk of loss or ongoing cash flows. Which type of CMO would you be most interested in owning! Tranche A Tranchez Companion tranche of a PAC Inverse Floater Class