Consider the following CMO: - Tranche A issued for $12 million with a coupon of 6.5% - Tranche issued for $4 million with a coupon of 6.5% - Z-Tranche issued for $4 million with a coupon of 6.5% The securities are backed by a pool of fully amortizing 30-year fixed rate mortgages with WAC equal to 6.5% and monthly payments. There is assumed to be a 5% CPR in this pool and no servicing fee. What does this graph represent? 250000 200000 150000 ZIBIA 100000 50000 O 61 - 71 - 81 6 101 111 121 - 131 141 151 161 171) 181 - 191. 201, 211 221 231 241 - 251. 261 271 281 291 301 - 311 321 331 341 351 Beginning balance on each tranche Cash flows to each tranche O O The remaining balance on each tranche o Principal payments to each tranche Consider the following CMO: - Tranche A issued for $12 million with a coupon of 6.5% - Tranche issued for $4 million with a coupon of 6.5% - Z-Tranche issued for $4 million with a coupon of 6.5% The securities are backed by a pool of fully amortizing 30-year fixed rate mortgages with WAC equal to 6.5% and monthly payments. There is assumed to be a 5% CPR in this pool and no servicing fee. What does this graph represent? 250000 200000 150000 ZIBIA 100000 50000 O 61 - 71 - 81 6 101 111 121 - 131 141 151 161 171) 181 - 191. 201, 211 221 231 241 - 251. 261 271 281 291 301 - 311 321 331 341 351 Beginning balance on each tranche Cash flows to each tranche O O The remaining balance on each tranche o Principal payments to each tranche