Question $2$: Collateralized Mortgage Obligations $(25$ points$)$

Consider the following Collateralized Mortgage Obligations with four classes of securities

issued.

a$)$ Determine the total payment to Tranche $A$ at the end of year $1.(5$ points$)$

b$)$ Determine the total payment to Tranche B at the end of year $1.(5$ points$)$

c$)$ Determine the total payment to Tranche $C$ at the end of year $3.(5$ points$)$

d$)$ Determine the total payment to Tranche $Z$ at the end of year $3.(5$ points$)$

e$)$ Determine the residual cash flow to equity at the end of year $4.(5$ points$)$