5.We are comparing the projected cash flows to different Tranche A's of the various CMOs described below. TRANCHE A Characteristics for Pool Characteristics CMO 1 CMO 2 CMO 3 WAC 10% 9% 9.5% WAM 360 360 340 PSA 100 300 50 Coupon Rate 8% 8% 8% Tranche A Principal $200,000 $100,000 $200,000 Total Principal $300,000 $300,000 $300,000 Next to each repayment profile below, identify to which CMO the Tranche A belongs and explain your answer. Your response should read, for example, "First Tranche A is the Tranche A from CMO 2 because ... Second Tranche A is the Tranche A from CMO 3 because ...' (10 points). FIRST TRANCHE A Tranche A Cash Flow Pattern $2.500 $2.000 $1,500 $1.000 5500 50 1 51 101 251 151 201 Time Elapsed 301 351 1 SECOND TRANCHE A Tranche A Cash Flow Pattern $3,000 $2,500 Monthly Payment $2,000 $1,500 $1,000 $500 30 1 51 101 251 301 351 151 201 Time Elapsed THIRD TRANCHE A Tranche A Cash Flow Pattern $4.500 $4.000 $3.500 $3,000 $2,500 $2.000 $1.500 $1.000 $500 SO 1 51 101 251 301 351 151 201 Time Elapsed 5.We are comparing the projected cash flows to different Tranche A's of the various CMOs described below. TRANCHE A Characteristics for Pool Characteristics CMO 1 CMO 2 CMO 3 WAC 10% 9% 9.5% WAM 360 360 340 PSA 100 300 50 Coupon Rate 8% 8% 8% Tranche A Principal $200,000 $100,000 $200,000 Total Principal $300,000 $300,000 $300,000 Next to each repayment profile below, identify to which CMO the Tranche A belongs and explain your answer. Your response should read, for example, "First Tranche A is the Tranche A from CMO 2 because ... Second Tranche A is the Tranche A from CMO 3 because ...' (10 points). FIRST TRANCHE A Tranche A Cash Flow Pattern $2.500 $2.000 $1,500 $1.000 5500 50 1 51 101 251 151 201 Time Elapsed 301 351 1 SECOND TRANCHE A Tranche A Cash Flow Pattern $3,000 $2,500 Monthly Payment $2,000 $1,500 $1,000 $500 30 1 51 101 251 301 351 151 201 Time Elapsed THIRD TRANCHE A Tranche A Cash Flow Pattern $4.500 $4.000 $3.500 $3,000 $2,500 $2.000 $1.500 $1.000 $500 SO 1 51 101 251 301 351 151 201 Time Elapsed