Q 7\8

Use the following information to answer QUESTIONS 7 - 10. Consider the following two structures backed by a pool of assets: Structure 1 Tranche Par amount Coupon rate A 100 4.00 % B 200 4.25% 100 4.50% D 300 5.00% E 200 6.00% 200 6.000 Structure 2 Tranche Par amount Coupon rate A 100 4,00 % B 200 4.25% 100 4.5096 D 300 5.00% E 100 ? F 100 6.5% For structure 1. Tranches A-D are a sequence of PAC 1 and E is the support trance. For structure 2. Tranches A-E are a sequence of PAC 1 and F is the support tranche 0 Question 7 1 pts In structure 2. Tranche E and Fare created from tranche E of structure 1. What is the coupon rate for tranche Ein structure 27 (Round to 2 decimal places and do not include the percentage shen. For example, if the answer is 3.6789% then enter 3.68) Question 8 1 pts average life variability when compared Tranche D in structure 1 ha: [ Select ] a lower to tranche D in structure 2 the same a higher