Consider the following Asset Backed Security $($ABS$).$ Suppose that the principals assignedto the senir$,$ mezzanine, and equity tranches for the ABS, the ABS CD$01$ and the ABSCDO $2$ are as in figure $1$ expressed as percent of the total cash flows of the security.Subprime mortgagesLussae on Subprine Pordolios Mezzani$10\%15\%20\%25\%50\%$of ABSABSncheSenior tranches $(45\%)$AAAFigure$1$Mezzanine tranches $45\%)$BBBEquity tranches $(10\%)$Not rateda$)$ What are the effects of $10\%,15\%,20\%,25\%$ and $50\%$ losses on subprimeportfolios on the losses of all ABS, ABS CDO $1$ and ABS CDO $2$ tranches in figure $1?$Redraw and complete the table below in the answer book. Make sure your calculations areLo$8$ses Gon SeniorTranche of ABSLOsses onMezzanineEouiy Tancheof ARs coo Trancho of ABSABS CDO$1$CDOSenior tranche $(30\%)$AAAMezzanine tranche$60\%)$ BBBEquity tranche $(10\%)$Lossos onLosses onNcheEoABS CD$02$Senior tranche $(40\%)$S AAAANSWER BOOK.Mezzanine tranche$(50\%)$ BBBEquity tranche $(10\%)$Losses onMazzaninaTrancha of ABSCDO $2$REDRAW THE TABLE IN THELosses onSeoioTranche olABS CD$02$DON'T ANSWER HEREclear and explain your answers.