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Questions 6-9 please show work The following information pertains to next FOUR questions Consider the following Collateralized Mortgage Obligations with three classes of bonds, Tranche

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Questions 6-9 please show work

The following information pertains to next FOUR questions Consider the following Collateralized Mortgage Obligations with three classes of bonds, Tranche A, Tranche B, and Tranche Z. Assets 4-year, 120% fixed rate Mortgages S1,500,000 Coupon Rate 9% 10% 13% Amount Issued200000 Stated maturity 2 years 3 years 4 years Tranche $400,000 $400,000 $400,000 5 300000 All cash flows are annual 6. The total payment to Tranche A at the end of year 1 is nearest: a) $321,852 b) $341,852 c) S361,852 d) $381,852 e) $401,852 7. The total payment to Tranche B at the end of year 2 is nearest: a) $416,126 b) $422,126 c) $432,126 d) $442,126 e) $452,126 8. The total payment to Tranche Z at the end of year 3 is nearest: a) $376,220 b) $396,220 c) $416,220 d) $436,220 e) $456,220 9. The residual cash flow to equity at the end of year 4 is nearest: a) $314,591 b) $334,591 c) $354,591 d) $374,591 e) $394,591

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