QUESTION 10 Consider a CMBS backed by a 80 LTV loan of a $50,000,000 office building The loan is interest only with an 8 mortgage rate issued for 3 years with monthly payments The CMBS is issued with 37 5 subordination with a coupon rate on the senior tranche equal to 5 and coupon rate on the junior tranche equal to 7 An interest only residual carrying no principal will be issued as well (Same as Question 9) Suppose that in month 30 the borrower defaults on the underlying loan After foreclosure 80 of property value is recouped How much does tranche B receive in month 30 Assume that all the interest was paid for the month of default QUESTION 11 Consider a CMBS backed by a 80 LTV loan of a $50,000,000 office building The loan is interest only with an 8 mortgage rate issued for 3 years with monthly payments TheCMBS is issued with 37 5 subordination with a coupon rate on the senior tranche equal to 5 and coupon rate on the junior tranche equal to 7 An interest only residual carrying no principal will be issued as well (Same as Questions 9 and 10) Suppose that in month 15 the borrower defaults on the underlying loan After foreclosure 60 of property value is recouped How much does tranche B receive in month 15 Assume that all the interest was paid for the month of default

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Question: QUESTION 10 Consider a CMBS backed by a 80% LTV loan of a $50,000,000 office building. The loan is interest only with an 8% mortgage

QUESTION 10

Consider a CMBS backed by a 80% LTV loan of a $50,000,000 office building. The loan is interest only with an 8% mortgage rate issued for 3 years with monthly payments. The CMBS is issued with 37.5% subordination with a coupon rate on the senior tranche equal to 5% and coupon rate on the junior tranche equal to 7%. An interest only residual carrying no principal will be issued as well (Same as Question 9).

Suppose that in month 30 the borrower defaults on the underlying loan. After foreclosure 80% of property value is recouped. How much does tranche B receive in month 30? Assume that all the interest was paid for the month of default.

QUESTION 11

Consider a CMBS backed by a 80% LTV loan of a $50,000,000 office building. The loan is interest only with an 8% mortgage rate issued for 3 years with monthly payments. TheCMBS is issued with 37.5% subordination with a coupon rate on the senior tranche equal to 5% and coupon rate on the junior tranche equal to 7%. An interest only residual carrying no principal will be issued as well (Same as Questions 9 and 10).

Suppose that in month 15 the borrower defaults on the underlying loan. After foreclosure 60% of property value is recouped. How much does tranche B receive in month 15? Assume that all the interest was paid for the month of default.

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