QUESTION 9 Consider a CMBS backed by a 80% LTV loan of a $50,000 000 office building. The loans interest only with an 8% mortgage rate issued for 3 ye ars with monthly payments. The CMBS s issued with 375% subordination with a coupon tate on the ento tanche 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 Assume no default occurred. In month 35, how much did the residual tranche receive? 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 375% 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 pnncipal will be issued as well (Same as Question9) Suppose that in month 30 the borrower defaults on the underlying loan. After foreclosure 80% of property value is te couped H ow much does tranche B receive in month 30? Assume that all the interest was paid for the month of default