CPJ Bank has created a Collateralized Debt Obligation by pooling 250 residential mortgages. Each mortgage has a loan value of 500,000 and the average yield on these mortgages is 10%. The tranches of the CDO are: (i) What are the benefits of securitization to CPJ and potential investors? What are the benefits to CPJ of using a structure with multiple tranches? (6 marks) (ii) Use a diagram to illustrate the structure of this CDO highlighting the payments to all parties if there is no default in the underlying mortgages. (8 marks) (iii) Suppose 25% of the mortgages default, what is the income to CPJ and the investors in each of the tranches? (9 marks)