Question 21 (1 point) A newly issue CMO's mortgage pool has a balance of $105.19 million average interest rate of 11.89% payable annually over a five-year term. two tranches. Priority payments will be made to Tranche A and will incl coupon, all amortization from the mortgage pool, and the interest that accrued to Tranche Z until Tranche A's principal is fully repaid. Tranche interest without any cash payments until the senior tranche is repaid. It current interest and principal payments at that time. Tranche A has a pr balance of $53.33 million with an annual coupon of 8.53%. Tranche Zh balance of $44.85 million with an annual coupon of 11.89%. Suppose t beginning of year 2, the CMO learns that 12% of year 2 beginning pool default and will no longer be repaid. Assume that the loss will be spread over the entire pool and reduce the mortgage pool payments from year What will be the revised annual mortgage pool payment (including prin interest) in year 2? $24.33 million $24.97 million $25.61 million $26.25 million $26.89 million Question 21 (1 point) A newly issue CMO's mortgage pool has a balance of $105.19 million average interest rate of 11.89% payable annually over a five-year term. two tranches. Priority payments will be made to Tranche A and will incl coupon, all amortization from the mortgage pool, and the interest that accrued to Tranche Z until Tranche A's principal is fully repaid. Tranche interest without any cash payments until the senior tranche is repaid. It current interest and principal payments at that time. Tranche A has a pr balance of $53.33 million with an annual coupon of 8.53%. Tranche Zh balance of $44.85 million with an annual coupon of 11.89%. Suppose t beginning of year 2, the CMO learns that 12% of year 2 beginning pool default and will no longer be repaid. Assume that the loss will be spread over the entire pool and reduce the mortgage pool payments from year What will be the revised annual mortgage pool payment (including prin interest) in year 2? $24.33 million $24.97 million $25.61 million $26.25 million $26.89 million