For questions 2 and 3 consider the following hypothetical private label conduit deal structure with 1bn in underlying loans: 2) ( 50 points) Assume the above deal has 450mm loans default with a 30% loss severity. a) What are the total losses on the defaulted loans and how much principal was recovered? b) Which classes take losses and how much? c) Which classes receive principal payments and par and how much? d) Please update the table below to reflect the new sizes and effective CE after the defaulted loans and payment of recovered principal. 2) (20 points) Assume instead of having defaults the deal had 175mm loans defease. Please fill out the below table with new defeasance adjusted CE