Calculate the cash flows for the following CMO with sequential pay tranches. Consider that the payments into the pool from mortgage borrower occur annually and that there is no prepayment. These mortgages are all FHA mortgages; all are fully amortizing mortgages with a maturity of 5 years and an interest rate of 11%. Assume that Tranche Zs interests are allocated to paid Tranches A and B until principal in A and B get fully paid. (15 points) Coupon Rate Amount Issued Assets Mortgages 6- year interest 5-year maturity $75,000,000 Total Assets $75,000,000 Liabilities Class A Bond Class 2 Bond Class B Bond 2-4 years Total Bonds Maturity Equity 1-3 years 9.25% 4-5 years Total Debt and net worth 10% 11% 1. Calculate the weighted average coupon rate of this deal. (1 points) 2. Calculate the Loan Schedule for the mortgage pool (3 points) 3. Calculate the cash flow for Tranches A, B and Z. (6 points) $27,000,000 $15,000,000 $30,000,000 $62,000,000 $3,000,000 $65,000,000 4. Calculate the cash flow for the residual class (Equity position). (3 points) 5. Calculate the IRR of the residual class. (2 points)