Question: 2.We are comparing the projected cash flows to different Tranche A's of the various CMOs described below. TRANCHE A Characteristics for Pool Characteristics WAC CMO

 2.We are comparing the projected cash flows to different Tranche A's

2.We are comparing the projected cash flows to different Tranche A's of the various CMOs described below. TRANCHE A Characteristics for Pool Characteristics WAC CMO 2 3 1 9.5% 10% 360 340 WAM PSA 360 100 300 50 Coupon Rate | 890 Tranche A Principal Total Principal $300,000 $300,000 $300,000 $200,000 $100,000 S200,000 Next to each repayment profile below, identify to which CMO the Tranche A belongs and explain your answer. ( 15 points) Tranche A :5101 151d 301 301 1 Tranche A Cash Flow Pattern 2.000 so 1 51101 151 201251 301 1 Time Elapsed Tranche A Cash Flow Pattern $4.500 $4.000 $3.500 $3,000 $2.500 $2000 $1.500 $1,000 5500 1 50 1 51 101 151 201 251 301 351 Time Elapsed 2.We are comparing the projected cash flows to different Tranche A's of the various CMOs described below. TRANCHE A Characteristics for Pool Characteristics WAC CMO 2 3 1 9.5% 10% 360 340 WAM PSA 360 100 300 50 Coupon Rate | 890 Tranche A Principal Total Principal $300,000 $300,000 $300,000 $200,000 $100,000 S200,000 Next to each repayment profile below, identify to which CMO the Tranche A belongs and explain your answer. ( 15 points) Tranche A :5101 151d 301 301 1 Tranche A Cash Flow Pattern 2.000 so 1 51101 151 201251 301 1 Time Elapsed Tranche A Cash Flow Pattern $4.500 $4.000 $3.500 $3,000 $2.500 $2000 $1.500 $1,000 5500 1 50 1 51 101 151 201 251 301 351 Time Elapsed

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