Consider a pool of $150M 2-year, 8% semi-annual mortgage loans securitized into two tranches Tranche A $100M of principal. Tranche B $50M of principal. Payment Y is equal to Time 0.5 1 1.5 2 a. 20.50 b. 4 c. 10.25 d. 27.95 Payment 41.32 41.32 41.32 41.32 Tranche A Principal Interest X Tranche B Principal Y Interest

Consider a pool of $150M2-year, 8% semi-annual mortgage loans securitized into two tranches Tranche A 5100M of principal. Tranche B \$50M of principal. Payment Y is equal to a. 20.50 b. 4 c. 10.25 d. 2795