Question 8 Consider a CMO where the mortgage pool has the following characteristics: Pool Balance at Origination: $20,000,000 WAC: 6.5% Guarantee/Servicing fee: 0.4% . WAM: 360 months Prepayment assumption: 120% PSA There are two classes of securities issued against this pool of mortgage collateral Tranche A: Face value $12,000,000 with a coupon of 6.5% Tranche B: Face value $8,000,000 with a coupon of 6.5% Which of the following does the graph below represent? Servicing B BA SOBREBE A. Total payments to each tranche over time B. Remaining balance on each tranche over time C. Interest payments to each tranche over time D. Principal payments to each tranche over time E. None of the above