Assume that an asset-backed security (ABS) has the following three tranches, the senior tranche, the mezzanine tranche, and the equity tranche. Cash flows are used first to repay the principal of the senior tranche, then the mezzanine tranche, and finally the equity tranche. In other words, losses of principal are first borne by the equity tranche, then by the mezzanine tranche, and then by the senior tranche. An ABS CDO is further created from the ABS mezzanine tranche. The ABS CDO also has three tranches (senior, mezzanine, and equity tranches). The structure of the ABS and ABS CDO product is shown in the following plot. Now we consider different probable losses to the whole subprime (10%, 15%, 20%, and 30%. Estimate the percentage loss to the following products and finalize the table. Plot: ABS: Senior tranches = 75%, Mezzanine Tranches = 20%, Equity Tranches = 5% and then ABS CDO: Senior tranches = 75%, Mezzanine Tranches = 20%, Equity Tranches = 5% please add excel formulas explaining results.

3. Assume that an asset-backed security (ABS) has the following three tranches, the senior tranche, the mezzanine tranche, and the equity tranche. Cash flows are used first to repay the principal of the senior tranche, then the mezzanine tranche, and finally the equity tranche. In other words, losses of principal are first borne by the equity tranche, then by the mezzanine tranche, and then by the senior tranche. An ABS CDO is further created from the ABS mezzanine tranche. The ABS CDO also has three tranches (senior, mezzanine, and equity tranches). The structure of the ABS and ABS CDO product is shown in the following plot. Now we consider different probable losses to the whole subprime (10%,15%,20%, and 30%. Estimate the percentage loss to the following products and finalize the table