cmo by xusuqin

VIEWS: 3 PAGES: 51

									          LESSON #11: REVIEW OF CMOs

In this lesson we will study a security that
is a derivative of mortgage pools, this security is the
collateralized mortgage obligation or CMO. CMO's are a type of
security that became quite popular during the 1980's, and have
been the basis for a whole series of collateralizations based
on securities such as junk bonds and credit cards.

The first issue to be addresed is to define what is meant by
the term collateralization. Simply put this means that some
good, such as a pool of mortgages, is used as collateral for
some other debt security. The cash flows off of the collateral
are used to pay off the obligations of the new debt security.
The agent that issues the collateralized debt makes money by
selling the new debt at a price higher than the purchase price
of the collateral. The reason that the new security has a
higher price is because the cash flows off of that security
can be tailored to the needs of the purchaser of the new debt
security. Although mortgages are the most common asset used
for collateral, they are by no means the only asset used. Car
loan, credit cards, junk bonds, and even high-grade corporate
bonds have been used as collateral. One reason that mortgages
have been so popular is because of the guarantee that the
mortgage agencies (GNMA,FHLMC, & FNMA) provide. This means
that little provision must be made for the possibility of
default on the payment of the collateral. So mortgages are
simply easier to use as collateral.

Once the collateral is in place, the cash flows from that
collateral are divided into section called tranches. These
tranches are then sold to investors in the CMO. Each tranche
will be assigned some percentage of the principal balance of
the collateralized asset. Each tranche will also have an
interest rate assigned to it. The owners of the tranche will
receive interest based on that rate multiplied by the tranches
principal balance. The tranches are assigned an order in which
they will receive principal payment. That is the first tranche
will receive all of the principal payments on the collateral
until it is paid off completely, then the second tranche will
start to receive the principal payments and so on until all of
the tranches have been paid off. Generally the amount of
principal assigned to all of the tranches will exactly equal
the total principal contained in the collateral. The following
example may help clarify the process. Let us suppose that the
collateral is comprised of $250 million in GNMA 9% coupon
mortgage pools. The CMO originator could create four tranches
as follows. Tranche 1 has a principal amount of $100 million
and a coupon of 8.5%. Tranche 2 has a principal amount of $55
million and a coupon of 9.3%. Tranche 3 has $75 million with a
coupon of 5%, and tranche 4 has $20 million with a coupon of
12%. When the first payment from the collateral is received,
the interest portion is divided among the tranches with each
tranche receiving an amount equal to the tranche's coupon rate
times the tranche's outstanding principal balance. (Some care
must be taken when developing a CMO that all of the coupons on
the tranches will not genereate more interest than the coupon
on the collateral will supply.) The principal that is received
on the collateral will be entirely sent to the owners of the
first tranche. This reduces the outstanding principal balance
on the first tranche. Note that the principal payments will
include any prepayments on the collateral. When the second
payment is received the same process is followed, interest is
disbursed to each tranche and principal is disbursed to the
first tranche. If the first tranche has no outstanding
balance, the principal is disbursed to the second tranche, and
it becomes the senior bond.To see this graphically, press [F10].
Frequently the amount of interest that is received from the
collateral will be slightly more than the interest paid to the
tranches. This left over interest will be put into a special
tranche called the residual. The residual does not have any
principal attatched to it per se (at least in most CMO's), and
generally will only recieve small cash flows. When CMO's were
first introduced in the early 1980's, residuals were more
widely used than they currently are.

One of the real advantages that a CMO offers an investor is
the ability to choose the general time frame in which cash
flows will arrive. Clearly an investor in one of the first
tranches will receive principal payback in a fairly short
amount of time while an investor in one of the latter tranches
will wait quite a while before receiving principal. Because
there is more risk with CMO's than with Treasury bonds of
similar length (such as prepayment and default risk), the
yield on CMO's will be somewhat higher. It is because of this
tailoring of the timing of the cash flows that investors are
willing to pay more for a CMO piece than for a similar piece
in a normal mortgage pool. This is how CMO originators make
money.

The typical tranche on a CMO is simply a principal balance
and some coupon rate. There are, however, other types of
tranches. For example there are tranches that pay no coupon.
These are similar to zero-coupon bonds, the interest is simply
the difference between the amount of money paid to buy the
tranche and the amount of principal the tranche eventually
pays out. Another type of tranche is called the
negative-amortization tranche. In this tranche the interest
due on the tranche is not paid out but is added to the
principal of the tranche. This negative-amortization continues
for either a fixed number of months or until a certain event
occurs (such as the principal balance on a preceding tranche
is reduced to a fixed level.) Once the "neg-am" ceases the
tranche acts like a normal tranche with a coupon that pays on
the new current principal balance. Another type of tranche is
the "floater" tranche. This tranche will have a coupon rate
that will vary depending on some index rate (such as the prime
rate or LIBOR.) If that rate goes up then the coupon rate on
that tranche will rise, if the rate drops, so will the coupon
rate. These are just some of the variations on the traditional
tranche that exist, and new types of tranches are constantly
being developed. The traditional tranche is still the most
widely used, however.

The model for this lesson is one of a fairly simple four
tranche CMO with traditional tranches and a residual.
Experimenting with this model will allow you to develop a feel
for some of the relationships between the various tranches and
the collateral. Note that due to memory restrictions in these
PC's, several simplifying assumptions have been made. First we
assume that there is only one pool acting as collateral. In
reality multiple pools will be used for collateral, and the
cash flows from each pool must be modeled seperatly. Secondly
each of the tranches pays down sequentially. Sometimes
multiple tranches will pay down simultaneously with each
tranche receiving a set percentage of the current principal
cash flow from the collateral. Third, each coupon is fixed.
Floaters and "neg-am" tranches are not allowed. Finally, the
model only solves for price. You cannot enter a price and have
it solve for yield. Even with these assumptions you should be
able to develop some intuition about the way these securities
work.
                     CMO: WORK AREA

On the following page you will find a simple four-tranche CMO model.
In this model you can input the following, the PSA value for the
underlying collateral, the dollar amount for each tranche (which must
be less than or equal to the amount of the underlying collateral, and
the yield that is required of each tranche. The model will return the
price of each tranche.


Note that this is a very simplistic CMO model. No provision is made for
more that one tranche paying off simultaneously, the PSA value is not
allowed to change over time, and no default risk is taken into
consideration. This model will, however, allow you to see some of the
major relationships found in a CMO. Note that this model will not solve
for yield given a price.




INPUTS

Collateral                                          Price                     1,078,341
Face Value                 1,000,000                Monthly Payment              10,772
PSA Value                        100 %              Coupon                       10.00%

                          Tranche 1    Tranche 2    Tranche 3    Tranche 4    Residual

Dollar Amount                300,000      250,000      250,000      200,000     N/A
Coupon                         9.00%        9.00%        9.00%        9.00%     N/A
Required Yield                10.00%       10.00%       10.00%       10.00%     10.00%

OUTPUT

                          Tranche 1    Tranche 2    Tranche 3    Tranche 4    Residual

Tranche Prices :         293,788          238,954      234,760      185,403     125,436
Total CMO Value :                                                             1,078,341
Weighted Average Coupon:                                                          9.00%
Expected Profit :                                                                      0.00



Collateral Cash Flows
              Principal             PSA          Prin.          Interest
Month         Balance     Pool%     Schedule     Paid           Paid          Prepay

          0     1000000    100.00
          1      997561     99.97      0.00033           2439          8333         333
          2      995102     99.92      0.00050           2458          8311         499
          3      992623     99.85      0.00067           2477          8288         664
          4      990123     99.77      0.00084           2496          8263         828
          5      987602     99.67      0.00101           2515          8238         991
          6      985060     99.55      0.00117           2534          8211        1153
          7      982496     99.41      0.00134           2552          8183        1314
          8      979912     99.26      0.00151           2569          8155        1473
          9      977306     99.10      0.00168           2587          8125        1632
         10      974678     98.91      0.00185           2604          8094        1789
         11      972028     98.71      0.00202           2621          8063        1944
         12      969356     98.50      0.00219           2637          8030        2098
         13      966662     98.26      0.00236           2654          7996        2251
         14      963946     98.02      0.00254           2669          7962        2401
         15      961206     97.75      0.00271           2685          7927        2550
         16      958445     97.47      0.00288           2700          7891        2697
         17      955660     97.17      0.00305           2715          7854        2842
         18      952851     96.86      0.00322           2729          7816        2984
         19      950020     96.53      0.00340           2743          7777        3125
         20      947164     96.18      0.00357           2756          7738        3263
         21      944285     95.82      0.00374           2769          7698        3399
         22      941382     95.45      0.00392           2782          7657        3533
         23      938455     95.06      0.00409           2794          7615        3664
         24      935504     94.65      0.00427           2806          7573        3793
         25      932528     94.23      0.00444           2817          7530        3919
         26      929527     93.80      0.00462           2828          7486        4043
         27      926501     93.35      0.00479           2838          7442        4164
         28      923449     92.89      0.00497           2848          7397        4282
         29      920373     92.41      0.00514           2858          7351        4397
         30      917270     91.93      0.00514           2867          7305        4359
         31      914142     91.46      0.00514           2876          7259        4322
         32      910988     90.99      0.00514           2885          7214        4285
         33      907808     90.52      0.00514           2894          7168        4248
34   904601   90.06   0.00514   2903   7123   4211
35   901367   89.59   0.00514   2912   7078   4175
36   898106   89.13   0.00514   2921   7034   4138
37   894819   88.67   0.00514   2930   6989   4102
38   891503   88.22   0.00514   2940   6945   4066
39   888160   87.76   0.00514   2949   6901   4030
40   884790   87.31   0.00514   2958   6858   3994
41   881391   86.86   0.00514   2968   6814   3958
42   877964   86.42   0.00514   2977   6771   3922
43   874508   85.97   0.00514   2986   6728   3887
44   871024   85.53   0.00514   2996   6686   3851
45   867510   85.09   0.00514   3005   6643   3816
46   863967   84.65   0.00514   3015   6601   3781
47   860395   84.22   0.00514   3024   6559   3746
48   856793   83.78   0.00514   3034   6517   3711
49   853161   83.35   0.00514   3043   6476   3676
50   849499   82.92   0.00514   3053   6434   3642
51   845806   82.50   0.00514   3062   6393   3607
52   842082   82.07   0.00514   3072   6352   3573
53   838327   81.65   0.00514   3082   6312   3539
54   834541   81.23   0.00514   3091   6271   3505
55   830724   80.81   0.00514   3101   6231   3471
56   826874   80.40   0.00514   3111   6191   3437
57   822993   79.98   0.00514   3121   6152   3403
58   819079   79.57   0.00514   3130   6112   3369
59   815133   79.16   0.00514   3140   6073   3336
60   811154   78.76   0.00514   3150   6034   3303
61   807141   78.35   0.00514   3160   5995   3269
62   803095   77.95   0.00514   3170   5956   3236
63   799016   77.55   0.00514   3180   5918   3203
64   794902   77.15   0.00514   3190   5880   3170
65   790754   76.75   0.00514   3200   5842   3138
66   786572   76.36   0.00514   3210   5804   3105
67   782355   75.96   0.00514   3220   5766   3072
68   778102   75.57   0.00514   3230   5729   3040
69   773814   75.19   0.00514   3241   5692   3008
70   769491   74.80   0.00514   3251   5655   2975
71   765131   74.41   0.00514   3261   5618   2943
72   760735   74.03   0.00514   3271   5582   2911
73   756303   73.65   0.00514   3282   5545   2880
74   751833   73.27   0.00514   3292   5509   2848
75   747326   72.90   0.00514   3302   5473   2816
 76   742782   72.52   0.00514   3313   5438   2785
 77   738200   72.15   0.00514   3323   5402   2753
 78   733579   71.78   0.00514   3333   5367   2722
 79   728921   71.41   0.00514   3344   5332   2691
 80   724223   71.04   0.00514   3354   5297   2660
 81   719486   70.67   0.00514   3365   5262   2629
 82   714710   70.31   0.00514   3376   5227   2598
 83   709894   69.95   0.00514   3386   5193   2567
 84   705037   69.59   0.00514   3397   5159   2536
 85   700141   69.23   0.00514   3408   5125   2506
 86   695203   68.88   0.00514   3418   5091   2475
 87   690224   68.52   0.00514   3429   5057   2445
 88   685204   68.17   0.00514   3440   5024   2415
 89   680142   67.82   0.00514   3451   4991   2385
 90   675038   67.47   0.00514   3462   4958   2354
 91   669891   67.12   0.00514   3472   4925   2325
 92   664702   66.78   0.00514   3483   4892   2295
 93   659469   66.43   0.00514   3494   4860   2265
 94   654192   66.09   0.00514   3505   4828   2235
 95   648872   65.75   0.00514   3516   4795   2206
 96   643507   65.41   0.00514   3527   4763   2176
 97   638098   65.08   0.00514   3539   4732   2147
 98   632643   64.74   0.00514   3550   4700   2117
 99   627143   64.41   0.00514   3561   4669   2088
100   621597   64.08   0.00514   3572   4637   2059
101   616005   63.75   0.00514   3583   4606   2030
102   610366   63.42   0.00514   3595   4576   2001
103   604681   63.10   0.00514   3606   4545   1972
104   598948   62.77   0.00514   3617   4514   1944
105   593167   62.45   0.00514   3629   4484   1915
106   587338   62.13   0.00514   3640   4454   1886
107   581460   61.81   0.00514   3652   4424   1858
108   575534   61.49   0.00514   3663   4394   1829
109   569558   61.17   0.00514   3675   4364   1801
110   563532   60.86   0.00514   3686   4335   1773
111   557456   60.55   0.00514   3698   4305   1745
112   551330   60.23   0.00514   3709   4276   1717
113   545152   59.92   0.00514   3721   4247   1689
114   538923   59.62   0.00514   3733   4218   1661
115   532642   59.31   0.00514   3745   4190   1633
116   526309   59.00   0.00514   3756   4161   1605
117   519922   58.70   0.00514   3768   4133   1578
118   513483   58.40   0.00514   3780   4104   1550
119   506990   58.10   0.00514   3792   4076   1523
120   500443   57.80   0.00514   3804   4048   1495
121   493841   57.50   0.00514   3816   4021   1468
122   487185   57.21   0.00514   3828   3993   1441
123   480472   56.91   0.00514   3840   3966   1414
124   473704   56.62   0.00514   3852   3938   1387
125   466880   56.33   0.00514   3864   3911   1360
126   459998   56.04   0.00514   3876   3884   1333
127   453060   55.75   0.00514   3888   3858   1306
128   446063   55.46   0.00514   3901   3831   1279
129   439008   55.18   0.00514   3913   3804   1252
130   431895   54.90   0.00514   3925   3778   1226
131   424722   54.61   0.00514   3938   3752   1199
132   417489   54.33   0.00514   3950   3726   1173
133   410196   54.05   0.00514   3962   3700   1146
134   402842   53.77   0.00514   3975   3674   1120
135   395427   53.50   0.00514   3987   3648   1094
136   387951   53.22   0.00514   4000   3623   1067
137   380411   52.95   0.00514   4013   3598   1041
138   372809   52.68   0.00514   4025   3572   1015
139   365144   52.41   0.00514   4038   3547    989
140   357415   52.14   0.00514   4051   3522    963
141   349621   51.87   0.00514   4063   3498    937
142   341763   51.60   0.00514   4076   3473    912
143   333839   51.34   0.00514   4089   3449    886
144   325849   51.07   0.00514   4102   3424    860
145   317792   50.81   0.00514   4115   3400    835
146   309668   50.55   0.00514   4128   3376    809
147   301477   50.29   0.00514   4141   3352    784
148   293217   50.03   0.00514   4154   3328    758
149   284889   49.77   0.00514   4167   3305    733
150   276491   49.52   0.00514   4180   3281    708
151   268023   49.26   0.00514   4193   3258    683
152   259484   49.01   0.00514   4206   3234    657
153   250875   48.76   0.00514   4219   3211    632
154   242193   48.51   0.00514   4233   3188    607
155   233439   48.26   0.00514   4246   3165    582
156   224613   48.01   0.00514   4259   3143    557
157   215712   47.76   0.00514   4273   3120    533
158   206738   47.52   0.00514   4286   3098    508
159   197689   47.27   0.00514   4300   3075    483
160   188564   47.03   0.00514   4313   3053   458
161   179363   46.79   0.00514   4327   3031   434
162   170086   46.55   0.00514   4340   3009   409
163   160731   46.31   0.00514   4354   2987   385
164   151299   46.07   0.00514   4368   2966   360
165   141788   45.83   0.00514   4382   2944   336
166   132197   45.60   0.00514   4395   2922   312
167   122527   45.36   0.00514   4409   2901   287
168   112776   45.13   0.00514   4423   2880   263
169   102943   44.90   0.00514   4437   2859   239
170    93029   44.66   0.00514   4451   2838   215
171    83032   44.43   0.00514   4465   2817   191
172    72952   44.21   0.00514   4479   2796   167
173    62788   43.98   0.00514   4493   2776   143
174    52539   43.75   0.00514   4507   2755   119
175    42205   43.53   0.00514   4521   2735    95
176    31785   43.30   0.00514   4536   2715    71
177    21278   43.08   0.00514   4550   2694    47
178    10683   42.86   0.00514   4564   2674    24
179        0   42.64   0.00514   4579   2654     0
180        0   42.42   0.00514      0   4593     0
                          Tranche 1

Total          Total                                          Total      Present
Prin.          Cashflow     Prin.     Interest   Balance     Payment      Value

                                                 300000.00
        2772      11105    2771.84    2250.00    297228.16     5021.84   4980.34
        2957      11268    2956.97    2229.21    294271.19     5186.18   5100.81
        3141      11429    3141.08    2207.03    291130.11     5348.12   5216.61
        3324      11587    3324.09    2183.48    287806.02     5507.56   5327.74
        3506      11743    3505.87    2158.55    284300.15     5664.42   5434.19
        3686      11897    3686.34    2132.25    280613.81     5818.59   5535.96
        3865      12049    3865.39    2104.60    276748.42     5969.99   5633.07
        4043      12198    4042.92    2075.61    272705.50     6118.53   5725.51
        4219      12344    4218.82    2045.29    268486.68     6264.11   5813.30
        4393      12487    4393.01    2013.65    264093.67     6406.66   5896.45
        4565      12628    4565.38    1980.70    259528.29     6546.08   5974.98
        4736      12766    4735.84    1946.46    254792.45     6682.30   6048.90
        4904      12901    4904.29    1910.94    249888.17     6815.23   6118.24
        5071      13033    5070.63    1874.16    244817.54     6944.79   6183.03
        5235      13162    5234.78    1836.13    239582.76     7070.91   6243.29
        5397      13287    5396.64    1796.87    234186.12     7193.51   6299.05
        5556      13410    5556.13    1756.40    228629.99     7312.52   6350.34
        5713      13529    5713.15    1714.72    222916.84     7427.87   6397.20
        5868      13645    5867.62    1671.88    217049.23     7539.49   6439.67
        6019      13757    6019.45    1627.87    211029.77     7647.32   6477.79
        6169      13866    6168.57    1582.72    204861.21     7751.29   6511.60
        6315      13972    6314.89    1536.46    198546.32     7851.35   6541.14
        6458      14073    6458.33    1489.10    192087.99     7947.43   6566.47
        6599      14172    6598.82    1440.66    185489.17     8039.48   6587.63
        6736      14266    6736.28    1391.17    178752.88     8127.45   6604.67
        6871      14357    6870.65    1340.65    171882.23     8211.29   6617.66
        7002      14444    7001.84    1289.12    164880.39     8290.96   6626.64
        7130      14527    7129.81    1236.60    157750.58     8366.41   6631.68
        7254      14606    7254.47    1183.13    150496.12     8437.60   6632.83
        7226      14531    7226.11    1128.72    143270.01     8354.83   6513.49
        7198      14457    7197.92    1074.53    136072.09     8272.44   6395.96
        7170      14384    7169.90    1020.54    128902.19     8190.45   6280.23
        7142      14310    7142.06     966.77    121760.12     8108.83   6166.26
7114   14238   7114.39   913.20   114645.73   8027.59   6054.04
7087   14165   7086.89   859.84   107558.84   7946.74   5943.53
7060   14093   7059.56   806.69   100499.27   7866.26   5834.71
7032   14022   7032.40   753.74    93466.87   7786.15   5727.57
7005   13951   7005.41   701.00    86461.45   7706.41   5622.06
6979   13880   6978.59   648.46    79482.87   7627.05   5518.18
6952   13810   6951.93   596.12    72530.93   7548.05   5415.89
6925   13740   6925.44   543.98    65605.49   7469.42   5315.18
6899   13670   6899.12   492.04    58706.38   7391.16   5216.02
6873   13601   6872.96   440.30    51833.42   7313.25   5118.39
6847   13532   6846.96   388.75    44986.46   7235.71   5022.26
6821   13464   6821.12   337.40    38165.34   7158.52   4927.63
6795   13396   6795.45   286.24    31369.89   7081.69   4834.45
6770   13329   6769.94   235.27    24599.94   7005.22   4742.72
6745   13262   6744.59   184.50    17855.35   6929.09   4652.42
6719   13195   6719.41   133.92    11135.94   6853.32   4563.51
6694   13129   6694.38    83.52     4441.56   6777.90   4475.99
6670   13063   4441.56    33.31        0.00   4474.88   2930.70
6645   12997      0.00     0.00        0.00      0.00      0.00
6620   12932      0.00     0.00        0.00      0.00      0.00
6596   12867      0.00     0.00        0.00      0.00      0.00
6572   12803      0.00     0.00        0.00      0.00      0.00
6548   12739      0.00     0.00        0.00      0.00      0.00
6524   12675      0.00     0.00        0.00      0.00      0.00
6500   12612      0.00     0.00        0.00      0.00      0.00
6476   12549      0.00     0.00        0.00      0.00      0.00
6453   12486      0.00     0.00        0.00      0.00      0.00
6429   12424      0.00     0.00        0.00      0.00      0.00
6406   12363      0.00     0.00        0.00      0.00      0.00
6383   12301      0.00     0.00        0.00      0.00      0.00
6360   12240      0.00     0.00        0.00      0.00      0.00
6338   12179      0.00     0.00        0.00      0.00      0.00
6315   12119      0.00     0.00        0.00      0.00      0.00
6293   12059      0.00     0.00        0.00      0.00      0.00
6270   11999      0.00     0.00        0.00      0.00      0.00
6248   11940      0.00     0.00        0.00      0.00      0.00
6226   11881      0.00     0.00        0.00      0.00      0.00
6204   11823      0.00     0.00        0.00      0.00      0.00
6183   11764      0.00     0.00        0.00      0.00      0.00
6161   11706      0.00     0.00        0.00      0.00      0.00
6140   11649      0.00     0.00        0.00      0.00      0.00
6118   11592      0.00     0.00        0.00      0.00      0.00
6097   11535   0.00   0.00   0.00   0.00   0.00
6076   11478   0.00   0.00   0.00   0.00   0.00
6055   11422   0.00   0.00   0.00   0.00   0.00
6035   11366   0.00   0.00   0.00   0.00   0.00
6014   11311   0.00   0.00   0.00   0.00   0.00
5994   11256   0.00   0.00   0.00   0.00   0.00
5973   11201   0.00   0.00   0.00   0.00   0.00
5953   11146   0.00   0.00   0.00   0.00   0.00
5933   11092   0.00   0.00   0.00   0.00   0.00
5913   11038   0.00   0.00   0.00   0.00   0.00
5894   10985   0.00   0.00   0.00   0.00   0.00
5874   10932   0.00   0.00   0.00   0.00   0.00
5855   10879   0.00   0.00   0.00   0.00   0.00
5835   10826   0.00   0.00   0.00   0.00   0.00
5816   10774   0.00   0.00   0.00   0.00   0.00
5797   10722   0.00   0.00   0.00   0.00   0.00
5778   10670   0.00   0.00   0.00   0.00   0.00
5759   10619   0.00   0.00   0.00   0.00   0.00
5741   10568   0.00   0.00   0.00   0.00   0.00
5722   10517   0.00   0.00   0.00   0.00   0.00
5704   10467   0.00   0.00   0.00   0.00   0.00
5685   10417   0.00   0.00   0.00   0.00   0.00
5667   10367   0.00   0.00   0.00   0.00   0.00
5649   10318   0.00   0.00   0.00   0.00   0.00
5631   10269   0.00   0.00   0.00   0.00   0.00
5613   10220   0.00   0.00   0.00   0.00   0.00
5596   10171   0.00   0.00   0.00   0.00   0.00
5578   10123   0.00   0.00   0.00   0.00   0.00
5561   10075   0.00   0.00   0.00   0.00   0.00
5544   10028   0.00   0.00   0.00   0.00   0.00
5526    9980   0.00   0.00   0.00   0.00   0.00
5509    9933   0.00   0.00   0.00   0.00   0.00
5493    9886   0.00   0.00   0.00   0.00   0.00
5476    9840   0.00   0.00   0.00   0.00   0.00
5459    9794   0.00   0.00   0.00   0.00   0.00
5443    9748   0.00   0.00   0.00   0.00   0.00
5426    9702   0.00   0.00   0.00   0.00   0.00
5410    9657   0.00   0.00   0.00   0.00   0.00
5394    9612   0.00   0.00   0.00   0.00   0.00
5378    9567   0.00   0.00   0.00   0.00   0.00
5362    9523   0.00   0.00   0.00   0.00   0.00
5346    9479   0.00   0.00   0.00   0.00   0.00
5330   9435   0.00   0.00   0.00   0.00   0.00
5315   9391   0.00   0.00   0.00   0.00   0.00
5299   9348   0.00   0.00   0.00   0.00   0.00
5284   9305   0.00   0.00   0.00   0.00   0.00
5269   9262   0.00   0.00   0.00   0.00   0.00
5253   9219   0.00   0.00   0.00   0.00   0.00
5238   9177   0.00   0.00   0.00   0.00   0.00
5224   9135   0.00   0.00   0.00   0.00   0.00
5209   9093   0.00   0.00   0.00   0.00   0.00
5194   9052   0.00   0.00   0.00   0.00   0.00
5180   9011   0.00   0.00   0.00   0.00   0.00
5165   8970   0.00   0.00   0.00   0.00   0.00
5151   8929   0.00   0.00   0.00   0.00   0.00
5137   8888   0.00   0.00   0.00   0.00   0.00
5123   8848   0.00   0.00   0.00   0.00   0.00
5109   8808   0.00   0.00   0.00   0.00   0.00
5095   8769   0.00   0.00   0.00   0.00   0.00
5081   8729   0.00   0.00   0.00   0.00   0.00
5067   8690   0.00   0.00   0.00   0.00   0.00
5054   8651   0.00   0.00   0.00   0.00   0.00
5040   8613   0.00   0.00   0.00   0.00   0.00
5027   8574   0.00   0.00   0.00   0.00   0.00
5014   8536   0.00   0.00   0.00   0.00   0.00
5001   8498   0.00   0.00   0.00   0.00   0.00
4988   8461   0.00   0.00   0.00   0.00   0.00
4975   8423   0.00   0.00   0.00   0.00   0.00
4962   8386   0.00   0.00   0.00   0.00   0.00
4949   8349   0.00   0.00   0.00   0.00   0.00
4937   8313   0.00   0.00   0.00   0.00   0.00
4924   8276   0.00   0.00   0.00   0.00   0.00
4912   8240   0.00   0.00   0.00   0.00   0.00
4900   8204   0.00   0.00   0.00   0.00   0.00
4888   8169   0.00   0.00   0.00   0.00   0.00
4876   8133   0.00   0.00   0.00   0.00   0.00
4864   8098   0.00   0.00   0.00   0.00   0.00
4852   8063   0.00   0.00   0.00   0.00   0.00
4840   8028   0.00   0.00   0.00   0.00   0.00
4828   7994   0.00   0.00   0.00   0.00   0.00
4817   7960   0.00   0.00   0.00   0.00   0.00
4805   7926   0.00   0.00   0.00   0.00   0.00
4794   7892   0.00   0.00   0.00   0.00   0.00
4783   7858   0.00   0.00   0.00   0.00   0.00
4772   7825   0.00   0.00   0.00   0.00   0.00
4761   7792   0.00   0.00   0.00   0.00   0.00
4750   7759   0.00   0.00   0.00   0.00   0.00
4739   7726   0.00   0.00   0.00   0.00   0.00
4728   7694   0.00   0.00   0.00   0.00   0.00
4718   7661   0.00   0.00   0.00   0.00   0.00
4707   7629   0.00   0.00   0.00   0.00   0.00
4697   7598   0.00   0.00   0.00   0.00   0.00
4686   7566   0.00   0.00   0.00   0.00   0.00
4676   7535   0.00   0.00   0.00   0.00   0.00
4666   7504   0.00   0.00   0.00   0.00   0.00
4656   7473   0.00   0.00   0.00   0.00   0.00
4646   7442   0.00   0.00   0.00   0.00   0.00
4636   7412   0.00   0.00   0.00   0.00   0.00
4626   7381   0.00   0.00   0.00   0.00   0.00
4616   7351   0.00   0.00   0.00   0.00   0.00
4607   7321   0.00   0.00   0.00   0.00   0.00
4597   7292   0.00   0.00   0.00   0.00   0.00
4588   7262   0.00   0.00   0.00   0.00   0.00
4579   7233   0.00   0.00   0.00   0.00   0.00
   0   4593   0.00   0.00   0.00   0.00   0.00
Tranche 2                                                Tranche 3

                                    Total      Present
  Prin.     Interest   Balance     Payment      Value      Prin.

                       250000.00
    0.00    1875.00    250000.00     1875.00   1859.50       0.00
    0.00    1875.00    250000.00     1875.00   1844.14       0.00
    0.00    1875.00    250000.00     1875.00   1828.90       0.00
    0.00    1875.00    250000.00     1875.00   1813.78       0.00
    0.00    1875.00    250000.00     1875.00   1798.79       0.00
    0.00    1875.00    250000.00     1875.00   1783.92       0.00
    0.00    1875.00    250000.00     1875.00   1769.18       0.00
    0.00    1875.00    250000.00     1875.00   1754.56       0.00
    0.00    1875.00    250000.00     1875.00   1740.06       0.00
    0.00    1875.00    250000.00     1875.00   1725.68       0.00
    0.00    1875.00    250000.00     1875.00   1711.42       0.00
    0.00    1875.00    250000.00     1875.00   1697.27       0.00
    0.00    1875.00    250000.00     1875.00   1683.25       0.00
    0.00    1875.00    250000.00     1875.00   1669.34       0.00
    0.00    1875.00    250000.00     1875.00   1655.54       0.00
    0.00    1875.00    250000.00     1875.00   1641.86       0.00
    0.00    1875.00    250000.00     1875.00   1628.29       0.00
    0.00    1875.00    250000.00     1875.00   1614.83       0.00
    0.00    1875.00    250000.00     1875.00   1601.49       0.00
    0.00    1875.00    250000.00     1875.00   1588.25       0.00
    0.00    1875.00    250000.00     1875.00   1575.12       0.00
    0.00    1875.00    250000.00     1875.00   1562.11       0.00
    0.00    1875.00    250000.00     1875.00   1549.20       0.00
    0.00    1875.00    250000.00     1875.00   1536.39       0.00
    0.00    1875.00    250000.00     1875.00   1523.70       0.00
    0.00    1875.00    250000.00     1875.00   1511.10       0.00
    0.00    1875.00    250000.00     1875.00   1498.61       0.00
    0.00    1875.00    250000.00     1875.00   1486.23       0.00
    0.00    1875.00    250000.00     1875.00   1473.95       0.00
    0.00    1875.00    250000.00     1875.00   1461.76       0.00
    0.00    1875.00    250000.00     1875.00   1449.68       0.00
    0.00    1875.00    250000.00     1875.00   1437.70       0.00
    0.00    1875.00    250000.00     1875.00   1425.82       0.00
   0.00   1875.00   250000.00   1875.00   1414.04   0.00
   0.00   1875.00   250000.00   1875.00   1402.35   0.00
   0.00   1875.00   250000.00   1875.00   1390.76   0.00
   0.00   1875.00   250000.00   1875.00   1379.27   0.00
   0.00   1875.00   250000.00   1875.00   1367.87   0.00
   0.00   1875.00   250000.00   1875.00   1356.56   0.00
   0.00   1875.00   250000.00   1875.00   1345.35   0.00
   0.00   1875.00   250000.00   1875.00   1334.23   0.00
   0.00   1875.00   250000.00   1875.00   1323.21   0.00
   0.00   1875.00   250000.00   1875.00   1312.27   0.00
   0.00   1875.00   250000.00   1875.00   1301.43   0.00
   0.00   1875.00   250000.00   1875.00   1290.67   0.00
   0.00   1875.00   250000.00   1875.00   1280.00   0.00
   0.00   1875.00   250000.00   1875.00   1269.43   0.00
   0.00   1875.00   250000.00   1875.00   1258.93   0.00
   0.00   1875.00   250000.00   1875.00   1248.53   0.00
   0.00   1875.00   250000.00   1875.00   1238.21   0.00
2227.94   1875.00   247772.06   4102.94   2687.11   0.00
6644.79   1858.29   241127.26   8503.08   5522.83   0.00
6620.24   1808.45   234507.02   8428.69   5429.27   0.00
6595.84   1758.80   227911.18   8354.64   5337.10   0.00
6571.60   1709.33   221339.59   8280.93   5246.29   0.00
6547.51   1660.05   214792.08   8207.56   5156.83   0.00
6523.58   1610.94   208268.50   8134.52   5068.70   0.00
6499.80   1562.01   201768.70   8061.81   4981.88   0.00
6476.17   1513.27   195292.53   7989.44   4896.35   0.00
6452.70   1464.69   188839.83   7917.39   4812.10   0.00
6429.37   1416.30   182410.46   7845.67   4729.10   0.00
6406.20   1368.08   176004.26   7774.28   4647.34   0.00
6383.18   1320.03   169621.07   7703.21   4566.80   0.00
6360.31   1272.16   163260.76   7632.47   4487.47   0.00
6337.59   1224.46   156923.17   7562.04   4409.32   0.00
6315.01   1176.92   150608.16   7491.94   4332.33   0.00
6292.59   1129.56   144315.57   7422.15   4256.51   0.00
6270.31   1082.37   138045.26   7352.68   4181.82   0.00
6248.18   1035.34   131797.09   7283.51   4108.25   0.00
6226.19    988.48   125570.90   7214.67   4035.78   0.00
6204.35    941.78   119366.55   7146.13   3964.40   0.00
6182.65    895.25   113183.91   7077.90   3894.10   0.00
6161.09    848.88   107022.81   7009.97   3824.86   0.00
6139.68    802.67   100883.13   6942.35   3756.66   0.00
6118.41    756.62    94764.72   6875.04   3689.48   0.00
6097.29   710.74   88667.43   6808.02   3623.33      0.00
6076.30   665.01   82591.13   6741.31   3558.17      0.00
6055.45   619.43   76535.68   6674.89   3494.00      0.00
6034.75   574.02   70500.93   6608.77   3430.79      0.00
6014.18   528.76   64486.74   6542.94   3368.55      0.00
5993.76   483.65   58492.99   6477.41   3307.25      0.00
5973.47   438.70   52519.52   6412.16   3246.88      0.00
5953.32   393.90   46566.20   6347.21   3187.43      0.00
5933.30   349.25   40632.90   6282.55   3128.88      0.00
5913.42   304.75   34719.48   6218.17   3071.23      0.00
5893.68   260.40   28825.80   6154.08   3014.45      0.00
5874.07   216.19   22951.73   6090.27   2958.54      0.00
5854.60   172.14   17097.13   6026.74   2903.48      0.00
5835.26   128.23   11261.87   5963.49   2849.27      0.00
5816.06    84.46    5445.81   5900.52   2795.88      0.00
5445.81    40.84       0.00   5486.65   2578.29    351.17
   0.00     0.00       0.00      0.00      0.00   5778.04
   0.00     0.00       0.00      0.00      0.00   5759.23
   0.00     0.00       0.00      0.00      0.00   5740.55
   0.00     0.00       0.00      0.00      0.00   5722.01
   0.00     0.00       0.00      0.00      0.00   5703.59
   0.00     0.00       0.00      0.00      0.00   5685.30
   0.00     0.00       0.00      0.00      0.00   5667.14
   0.00     0.00       0.00      0.00      0.00   5649.11
   0.00     0.00       0.00      0.00      0.00   5631.21
   0.00     0.00       0.00      0.00      0.00   5613.43
   0.00     0.00       0.00      0.00      0.00   5595.78
   0.00     0.00       0.00      0.00      0.00   5578.26
   0.00     0.00       0.00      0.00      0.00   5560.86
   0.00     0.00       0.00      0.00      0.00   5543.59
   0.00     0.00       0.00      0.00      0.00   5526.44
   0.00     0.00       0.00      0.00      0.00   5509.41
   0.00     0.00       0.00      0.00      0.00   5492.51
   0.00     0.00       0.00      0.00      0.00   5475.74
   0.00     0.00       0.00      0.00      0.00   5459.08
   0.00     0.00       0.00      0.00      0.00   5442.55
   0.00     0.00       0.00      0.00      0.00   5426.13
   0.00     0.00       0.00      0.00      0.00   5409.84
   0.00     0.00       0.00      0.00      0.00   5393.67
   0.00     0.00       0.00      0.00      0.00   5377.62
   0.00     0.00       0.00      0.00      0.00   5361.69
   0.00     0.00       0.00      0.00      0.00   5345.87
0.00   0.00   0.00   0.00   0.00   5330.18
0.00   0.00   0.00   0.00   0.00   5314.60
0.00   0.00   0.00   0.00   0.00   5299.14
0.00   0.00   0.00   0.00   0.00   5283.80
0.00   0.00   0.00   0.00   0.00   5268.57
0.00   0.00   0.00   0.00   0.00   5253.46
0.00   0.00   0.00   0.00   0.00   5238.47
0.00   0.00   0.00   0.00   0.00   5223.59
0.00   0.00   0.00   0.00   0.00   5208.82
0.00   0.00   0.00   0.00   0.00   5194.17
0.00   0.00   0.00   0.00   0.00   5179.63
0.00   0.00   0.00   0.00   0.00   5165.21
0.00   0.00   0.00   0.00   0.00   5150.90
0.00   0.00   0.00   0.00   0.00   5136.69
0.00   0.00   0.00   0.00   0.00   5122.61
0.00   0.00   0.00   0.00   0.00   5108.63
0.00   0.00   0.00   0.00   0.00   5094.76
0.00   0.00   0.00   0.00   0.00   5081.01
0.00   0.00   0.00   0.00   0.00   5067.36
0.00   0.00   0.00   0.00   0.00   5053.82
0.00   0.00   0.00   0.00   0.00   1424.74
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00      0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
0.00   0.00   0.00   0.00   0.00   0.00
                                             Tranche 4

                        Total      Present
Interest   Balance     Payment      Value      Prin.     Interest

           250000.00
1875.00    250000.00     1875.00   1859.50       0.00    1500.00
1875.00    250000.00     1875.00   1844.14       0.00    1500.00
1875.00    250000.00     1875.00   1828.90       0.00    1500.00
1875.00    250000.00     1875.00   1813.78       0.00    1500.00
1875.00    250000.00     1875.00   1798.79       0.00    1500.00
1875.00    250000.00     1875.00   1783.92       0.00    1500.00
1875.00    250000.00     1875.00   1769.18       0.00    1500.00
1875.00    250000.00     1875.00   1754.56       0.00    1500.00
1875.00    250000.00     1875.00   1740.06       0.00    1500.00
1875.00    250000.00     1875.00   1725.68       0.00    1500.00
1875.00    250000.00     1875.00   1711.42       0.00    1500.00
1875.00    250000.00     1875.00   1697.27       0.00    1500.00
1875.00    250000.00     1875.00   1683.25       0.00    1500.00
1875.00    250000.00     1875.00   1669.34       0.00    1500.00
1875.00    250000.00     1875.00   1655.54       0.00    1500.00
1875.00    250000.00     1875.00   1641.86       0.00    1500.00
1875.00    250000.00     1875.00   1628.29       0.00    1500.00
1875.00    250000.00     1875.00   1614.83       0.00    1500.00
1875.00    250000.00     1875.00   1601.49       0.00    1500.00
1875.00    250000.00     1875.00   1588.25       0.00    1500.00
1875.00    250000.00     1875.00   1575.12       0.00    1500.00
1875.00    250000.00     1875.00   1562.11       0.00    1500.00
1875.00    250000.00     1875.00   1549.20       0.00    1500.00
1875.00    250000.00     1875.00   1536.39       0.00    1500.00
1875.00    250000.00     1875.00   1523.70       0.00    1500.00
1875.00    250000.00     1875.00   1511.10       0.00    1500.00
1875.00    250000.00     1875.00   1498.61       0.00    1500.00
1875.00    250000.00     1875.00   1486.23       0.00    1500.00
1875.00    250000.00     1875.00   1473.95       0.00    1500.00
1875.00    250000.00     1875.00   1461.76       0.00    1500.00
1875.00    250000.00     1875.00   1449.68       0.00    1500.00
1875.00    250000.00     1875.00   1437.70       0.00    1500.00
1875.00    250000.00     1875.00   1425.82       0.00    1500.00
1875.00   250000.00   1875.00   1414.04   0.00   1500.00
1875.00   250000.00   1875.00   1402.35   0.00   1500.00
1875.00   250000.00   1875.00   1390.76   0.00   1500.00
1875.00   250000.00   1875.00   1379.27   0.00   1500.00
1875.00   250000.00   1875.00   1367.87   0.00   1500.00
1875.00   250000.00   1875.00   1356.56   0.00   1500.00
1875.00   250000.00   1875.00   1345.35   0.00   1500.00
1875.00   250000.00   1875.00   1334.23   0.00   1500.00
1875.00   250000.00   1875.00   1323.21   0.00   1500.00
1875.00   250000.00   1875.00   1312.27   0.00   1500.00
1875.00   250000.00   1875.00   1301.43   0.00   1500.00
1875.00   250000.00   1875.00   1290.67   0.00   1500.00
1875.00   250000.00   1875.00   1280.00   0.00   1500.00
1875.00   250000.00   1875.00   1269.43   0.00   1500.00
1875.00   250000.00   1875.00   1258.93   0.00   1500.00
1875.00   250000.00   1875.00   1248.53   0.00   1500.00
1875.00   250000.00   1875.00   1238.21   0.00   1500.00
1875.00   250000.00   1875.00   1227.98   0.00   1500.00
1875.00   250000.00   1875.00   1217.83   0.00   1500.00
1875.00   250000.00   1875.00   1207.77   0.00   1500.00
1875.00   250000.00   1875.00   1197.78   0.00   1500.00
1875.00   250000.00   1875.00   1187.89   0.00   1500.00
1875.00   250000.00   1875.00   1178.07   0.00   1500.00
1875.00   250000.00   1875.00   1168.33   0.00   1500.00
1875.00   250000.00   1875.00   1158.68   0.00   1500.00
1875.00   250000.00   1875.00   1149.10   0.00   1500.00
1875.00   250000.00   1875.00   1139.60   0.00   1500.00
1875.00   250000.00   1875.00   1130.19   0.00   1500.00
1875.00   250000.00   1875.00   1120.85   0.00   1500.00
1875.00   250000.00   1875.00   1111.58   0.00   1500.00
1875.00   250000.00   1875.00   1102.40   0.00   1500.00
1875.00   250000.00   1875.00   1093.28   0.00   1500.00
1875.00   250000.00   1875.00   1084.25   0.00   1500.00
1875.00   250000.00   1875.00   1075.29   0.00   1500.00
1875.00   250000.00   1875.00   1066.40   0.00   1500.00
1875.00   250000.00   1875.00   1057.59   0.00   1500.00
1875.00   250000.00   1875.00   1048.85   0.00   1500.00
1875.00   250000.00   1875.00   1040.18   0.00   1500.00
1875.00   250000.00   1875.00   1031.58   0.00   1500.00
1875.00   250000.00   1875.00   1023.06   0.00   1500.00
1875.00   250000.00   1875.00   1014.60   0.00   1500.00
1875.00   250000.00   1875.00   1006.22   0.00   1500.00
1875.00   250000.00   1875.00    997.90   0.00   1500.00
1875.00   250000.00   1875.00    989.65   0.00   1500.00
1875.00   250000.00   1875.00    981.48   0.00   1500.00
1875.00   250000.00   1875.00    973.36   0.00   1500.00
1875.00   250000.00   1875.00    965.32   0.00   1500.00
1875.00   250000.00   1875.00    957.34   0.00   1500.00
1875.00   250000.00   1875.00    949.43   0.00   1500.00
1875.00   250000.00   1875.00    941.58   0.00   1500.00
1875.00   250000.00   1875.00    933.80   0.00   1500.00
1875.00   250000.00   1875.00    926.08   0.00   1500.00
1875.00   250000.00   1875.00    918.43   0.00   1500.00
1875.00   250000.00   1875.00    910.84   0.00   1500.00
1875.00   250000.00   1875.00    903.31   0.00   1500.00
1875.00   250000.00   1875.00    895.85   0.00   1500.00
1875.00   250000.00   1875.00    888.44   0.00   1500.00
1875.00   249648.83   2226.17   1046.12   0.00   1500.00
1872.37   243870.79   7650.41   3565.37   0.00   1500.00
1829.03   238111.55   7588.26   3507.19   0.00   1500.00
1785.84   232371.00   7526.39   3449.84   0.00   1500.00
1742.78   226648.99   7464.79   3393.33   0.00   1500.00
1699.87   220945.40   7403.46   3337.63   0.00   1500.00
1657.09   215260.10   7342.39   3282.75   0.00   1500.00
1614.45   209592.96   7281.59   3228.66   0.00   1500.00
1571.95   203943.85   7221.06   3175.36   0.00   1500.00
1529.58   198312.64   7160.79   3122.83   0.00   1500.00
1487.34   192699.21   7100.78   3071.07   0.00   1500.00
1445.24   187103.43   7041.03   3020.06   0.00   1500.00
1403.28   181525.17   6981.53   2969.79   0.00   1500.00
1361.44   175964.31   6922.30   2920.26   0.00   1500.00
1319.73   170420.72   6863.32   2871.45   0.00   1500.00
1278.16   164894.28   6804.59   2823.35   0.00   1500.00
1236.71   159384.87   6746.12   2775.96   0.00   1500.00
1195.39   153892.35   6687.90   2729.26   0.00   1500.00
1154.19   148416.62   6629.93   2683.24   0.00   1500.00
1113.12   142957.54   6572.20   2637.89   0.00   1500.00
1072.18   137514.99   6514.73   2593.21   0.00   1500.00
1031.36   132088.86   6457.50   2549.19   0.00   1500.00
 990.67   126679.02   6400.51   2505.81   0.00   1500.00
 950.09   121285.34   6343.76   2463.07   0.00   1500.00
 909.64   115907.73   6287.26   2420.96   0.00   1500.00
 869.31   110546.04   6231.00   2379.46   0.00   1500.00
 829.10   105200.16   6174.97   2338.58   0.00   1500.00
789.00   99869.99   6119.18   2298.30      0.00   1500.00
749.02   94555.38   6063.63   2258.61      0.00   1500.00
709.17   89256.24   6008.31   2219.51      0.00   1500.00
669.42   83972.44   5953.22   2180.99      0.00   1500.00
629.79   78703.87   5898.37   2143.03      0.00   1500.00
590.28   73450.41   5843.74   2105.64      0.00   1500.00
550.88   68211.94   5789.35   2068.80      0.00   1500.00
511.59   62988.35   5735.18   2032.50      0.00   1500.00
472.41   57779.53   5681.23   1996.75      0.00   1500.00
433.35   52585.36   5627.52   1961.52      0.00   1500.00
394.39   47405.73   5574.02   1926.82      0.00   1500.00
355.54   42240.52   5520.75   1892.63      0.00   1500.00
316.80   37089.62   5467.70   1858.95      0.00   1500.00
278.17   31952.93   5414.87   1825.78      0.00   1500.00
239.65   26830.32   5362.25   1793.09      0.00   1500.00
201.23   21721.69   5309.86   1760.90      0.00   1500.00
162.91   16626.93   5257.68   1729.18      0.00   1500.00
124.70   11545.92   5205.71   1697.94      0.00   1500.00
 86.59    6478.56   5153.96   1667.17      0.00   1500.00
 48.59    1424.74   5102.41   1636.86      0.00   1500.00
 10.69       0.00   1435.42    456.68   3615.66   1500.00
  0.00       0.00      0.00      0.00   5027.08   1472.88
  0.00       0.00      0.00      0.00   5013.87   1435.18
  0.00       0.00      0.00      0.00   5000.76   1397.58
  0.00       0.00      0.00      0.00   4987.77   1360.07
  0.00       0.00      0.00      0.00   4974.88   1322.66
  0.00       0.00      0.00      0.00   4962.10   1285.35
  0.00       0.00      0.00      0.00   4949.42   1248.13
  0.00       0.00      0.00      0.00   4936.85   1211.01
  0.00       0.00      0.00      0.00   4924.38   1173.99
  0.00       0.00      0.00      0.00   4912.02   1137.05
  0.00       0.00      0.00      0.00   4899.77   1100.21
  0.00       0.00      0.00      0.00   4887.62   1063.47
  0.00       0.00      0.00      0.00   4875.57   1026.81
  0.00       0.00      0.00      0.00   4863.62    990.24
  0.00       0.00      0.00      0.00   4851.78    953.76
  0.00       0.00      0.00      0.00   4840.04    917.38
  0.00       0.00      0.00      0.00   4828.40    881.08
  0.00       0.00      0.00      0.00   4816.86    844.86
  0.00       0.00      0.00      0.00   4805.43    808.74
  0.00       0.00      0.00      0.00   4794.09    772.70
  0.00       0.00      0.00      0.00   4782.86    736.74
0.00   0.00   0.00   0.00   4771.72   700.87
0.00   0.00   0.00   0.00   4760.69   665.08
0.00   0.00   0.00   0.00   4749.75   629.38
0.00   0.00   0.00   0.00   4738.91   593.75
0.00   0.00   0.00   0.00   4728.18   558.21
0.00   0.00   0.00   0.00   4717.54   522.75
0.00   0.00   0.00   0.00   4706.99   487.37
0.00   0.00   0.00   0.00   4696.55   452.07
0.00   0.00   0.00   0.00   4686.20   416.84
0.00   0.00   0.00   0.00   4675.95   381.69
0.00   0.00   0.00   0.00   4665.80   346.63
0.00   0.00   0.00   0.00   4655.74   311.63
0.00   0.00   0.00   0.00   4645.77   276.71
0.00   0.00   0.00   0.00   4635.90   241.87
0.00   0.00   0.00   0.00   4626.13   207.10
0.00   0.00   0.00   0.00   4616.45   172.41
0.00   0.00   0.00   0.00   4606.87   137.78
0.00   0.00   0.00   0.00   4597.38   103.23
0.00   0.00   0.00   0.00   4587.98    68.75
0.00   0.00   0.00   0.00   4578.68    34.34
0.00   0.00   0.00   0.00      0.00     0.00
                                  Residual

             Total      Present                           Total
Balance     Payment      Value      Prin.     Interest   Payment

200000.00
200000.00     1500.00   1487.60        0.00    833.33     833.33
200000.00     1500.00   1475.31        0.00    831.84     831.84
200000.00     1500.00   1463.12        0.00    830.63     830.63
200000.00     1500.00   1451.02        0.00    829.70     829.70
200000.00     1500.00   1439.03        0.00    829.06     829.06
200000.00     1500.00   1427.14        0.00    828.72     828.72
200000.00     1500.00   1415.35        0.00    828.69     828.69
200000.00     1500.00   1403.65        0.00    828.99     828.99
200000.00     1500.00   1392.05        0.00    829.61     829.61
200000.00     1500.00   1380.54        0.00    830.57     830.57
200000.00     1500.00   1369.13        0.00    831.87     831.87
200000.00     1500.00   1357.82        0.00    833.52     833.52
200000.00     1500.00   1346.60        0.00    835.53     835.53
200000.00     1500.00   1335.47        0.00    837.89     837.89
200000.00     1500.00   1324.43        0.00    840.62     840.62
200000.00     1500.00   1313.49        0.00    843.72     843.72
200000.00     1500.00   1302.63        0.00    847.19     847.19
200000.00     1500.00   1291.86        0.00    851.04     851.04
200000.00     1500.00   1281.19        0.00    855.26     855.26
200000.00     1500.00   1270.60        0.00    859.86     859.86
200000.00     1500.00   1260.10        0.00    864.84     864.84
200000.00     1500.00   1249.68        0.00    870.19     870.19
200000.00     1500.00   1239.36        0.00    875.92     875.92
200000.00     1500.00   1229.11        0.00    882.03     882.03
200000.00     1500.00   1218.96        0.00    888.52     888.52
200000.00     1500.00   1208.88        0.00    895.37     895.37
200000.00     1500.00   1198.89        0.00    902.59     902.59
200000.00     1500.00   1188.98        0.00    910.17     910.17
200000.00     1500.00   1179.16        0.00    918.11     918.11
200000.00     1500.00   1169.41        0.00    926.40     926.40
200000.00     1500.00   1159.75        0.00    934.73     934.73
200000.00     1500.00   1150.16        0.00    943.10     943.10
200000.00     1500.00   1140.66        0.00    951.51     951.51
200000.00   1500.00   1131.23   0.00    959.96    959.96
200000.00   1500.00   1121.88   0.00    968.46    968.46
200000.00   1500.00   1112.61   0.00    977.00    977.00
200000.00   1500.00   1103.41   0.00    985.57    985.57
200000.00   1500.00   1094.30   0.00    994.19    994.19
200000.00   1500.00   1085.25   0.00   1002.85   1002.85
200000.00   1500.00   1076.28   0.00   1011.55   1011.55
200000.00   1500.00   1067.39   0.00   1020.29   1020.29
200000.00   1500.00   1058.57   0.00   1029.07   1029.07
200000.00   1500.00   1049.82   0.00   1037.89   1037.89
200000.00   1500.00   1041.14   0.00   1046.76   1046.76
200000.00   1500.00   1032.54   0.00   1055.66   1055.66
200000.00   1500.00   1024.00   0.00   1064.61   1064.61
200000.00   1500.00   1015.54   0.00   1073.59   1073.59
200000.00   1500.00   1007.15   0.00   1082.62   1082.62
200000.00   1500.00    998.82   0.00   1091.69   1091.69
200000.00   1500.00    990.57   0.00   1100.79   1100.79
200000.00   1500.00    982.38   0.00   1109.94   1109.94
200000.00   1500.00    974.26   0.00   1119.13   1119.13
200000.00   1500.00    966.21   0.00   1128.36   1128.36
200000.00   1500.00    958.23   0.00   1137.63   1137.63
200000.00   1500.00    950.31   0.00   1146.94   1146.94
200000.00   1500.00    942.45   0.00   1156.29   1156.29
200000.00   1500.00    934.67   0.00   1165.69   1165.69
200000.00   1500.00    926.94   0.00   1175.12   1175.12
200000.00   1500.00    919.28   0.00   1184.59   1184.59
200000.00   1500.00    911.68   0.00   1194.11   1194.11
200000.00   1500.00    904.15   0.00   1203.66   1203.66
200000.00   1500.00    896.68   0.00   1213.26   1213.26
200000.00   1500.00    889.27   0.00   1222.89   1222.89
200000.00   1500.00    881.92   0.00   1232.57   1232.57
200000.00   1500.00    874.63   0.00   1242.28   1242.28
200000.00   1500.00    867.40   0.00   1252.04   1252.04
200000.00   1500.00    860.23   0.00   1261.84   1261.84
200000.00   1500.00    853.12   0.00   1271.68   1271.68
200000.00   1500.00    846.07   0.00   1281.56   1281.56
200000.00   1500.00    839.08   0.00   1291.48   1291.48
200000.00   1500.00    832.14   0.00   1301.44   1301.44
200000.00   1500.00    825.27   0.00   1311.44   1311.44
200000.00   1500.00    818.45   0.00   1321.48   1321.48
200000.00   1500.00    811.68   0.00   1331.56   1331.56
200000.00   1500.00    804.97   0.00   1341.68   1341.68
200000.00   1500.00   798.32   0.00   1351.84   1351.84
200000.00   1500.00   791.72   0.00   1362.05   1362.05
200000.00   1500.00   785.18   0.00   1372.29   1372.29
200000.00   1500.00   778.69   0.00   1382.57   1382.57
200000.00   1500.00   772.26   0.00   1392.90   1392.90
200000.00   1500.00   765.87   0.00   1403.26   1403.26
200000.00   1500.00   759.54   0.00   1413.67   1413.67
200000.00   1500.00   753.27   0.00   1424.12   1424.12
200000.00   1500.00   747.04   0.00   1434.60   1434.60
200000.00   1500.00   740.87   0.00   1445.13   1445.13
200000.00   1500.00   734.74   0.00   1455.70   1455.70
200000.00   1500.00   728.67   0.00   1466.31   1466.31
200000.00   1500.00   722.65   0.00   1476.96   1476.96
200000.00   1500.00   716.68   0.00   1487.65   1487.65
200000.00   1500.00   710.76   0.00   1498.38   1498.38
200000.00   1500.00   704.88   0.00   1509.15   1509.15
200000.00   1500.00   699.06   0.00   1519.96   1519.96
200000.00   1500.00   693.28   0.00   1530.81   1530.81
200000.00   1500.00   687.55   0.00   1541.70   1541.70
200000.00   1500.00   681.87   0.00   1552.64   1552.64
200000.00   1500.00   676.23   0.00   1563.61   1563.61
200000.00   1500.00   670.64   0.00   1574.63   1574.63
200000.00   1500.00   665.10   0.00   1585.69   1585.69
200000.00   1500.00   659.60   0.00   1596.78   1596.78
200000.00   1500.00   654.15   0.00   1607.92   1607.92
200000.00   1500.00   648.75   0.00   1619.10   1619.10
200000.00   1500.00   643.38   0.00   1630.32   1630.32
200000.00   1500.00   638.07   0.00   1641.58   1641.58
200000.00   1500.00   632.79   0.00   1652.88   1652.88
200000.00   1500.00   627.56   0.00   1664.22   1664.22
200000.00   1500.00   622.38   0.00   1675.61   1675.61
200000.00   1500.00   617.23   0.00   1687.03   1687.03
200000.00   1500.00   612.13   0.00   1698.50   1698.50
200000.00   1500.00   607.07   0.00   1710.01   1710.01
200000.00   1500.00   602.06   0.00   1721.55   1721.55
200000.00   1500.00   597.08   0.00   1733.14   1733.14
200000.00   1500.00   592.15   0.00   1744.77   1744.77
200000.00   1500.00   587.25   0.00   1756.44   1756.44
200000.00   1500.00   582.40   0.00   1768.16   1768.16
200000.00   1500.00   577.59   0.00   1779.91   1779.91
200000.00   1500.00   572.81   0.00   1791.71   1791.71
200000.00   1500.00   568.08   0.00   1803.54   1803.54
200000.00   1500.00    563.38   0.00   1815.42   1815.42
200000.00   1500.00    558.73   0.00   1827.34   1827.34
200000.00   1500.00    554.11   0.00   1839.30   1839.30
200000.00   1500.00    549.53   0.00   1851.30   1851.30
200000.00   1500.00    544.99   0.00   1863.35   1863.35
200000.00   1500.00    540.49   0.00   1875.43   1875.43
200000.00   1500.00    536.02   0.00   1887.56   1887.56
200000.00   1500.00    531.59   0.00   1899.73   1899.73
200000.00   1500.00    527.20   0.00   1911.94   1911.94
200000.00   1500.00    522.84   0.00   1924.19   1924.19
200000.00   1500.00    518.52   0.00   1936.48   1936.48
200000.00   1500.00    514.23   0.00   1948.82   1948.82
200000.00   1500.00    509.98   0.00   1961.20   1961.20
200000.00   1500.00    505.77   0.00   1973.62   1973.62
200000.00   1500.00    501.59   0.00   1986.08   1986.08
200000.00   1500.00    497.44   0.00   1998.58   1998.58
200000.00   1500.00    493.33   0.00   2011.13   2011.13
200000.00   1500.00    489.25   0.00   2023.71   2023.71
200000.00   1500.00    485.21   0.00   2036.34   2036.34
200000.00   1500.00    481.20   0.00   2049.01   2049.01
196384.34   5115.66   1627.54   0.00   2061.73   2061.73
191357.26   6499.96   2050.87   0.00   2074.48   2074.48
186343.40   6449.05   2017.99   0.00   2087.28   2087.28
181342.63   6398.34   1985.57   0.00   2100.12   2100.12
176354.86   6347.84   1953.62   0.00   2113.01   2113.01
171379.98   6297.54   1922.12   0.00   2125.93   2125.93
166417.89   6247.45   1891.07   0.00   2138.90   2138.90
161468.46   6197.56   1860.47   0.00   2151.91   2151.91
156531.61   6147.86   1830.30   0.00   2164.97   2164.97
151607.23   6098.37   1800.56   0.00   2178.06   2178.06
146695.20   6049.08   1771.25   0.00   2191.20   2191.20
141795.44   5999.98   1742.35   0.00   2204.39   2204.39
136907.82   5951.08   1713.87   0.00   2217.61   2217.61
132032.25   5902.38   1685.79   0.00   2230.88   2230.88
127168.63   5853.86   1658.12   0.00   2244.19   2244.19
122316.86   5805.54   1630.84   0.00   2257.55   2257.55
117476.82   5757.41   1603.96   0.00   2270.94   2270.94
112648.42   5709.48   1577.45   0.00   2284.38   2284.38
107831.56   5661.73   1551.33   0.00   2297.87   2297.87
103026.13   5614.16   1525.59   0.00   2311.39   2311.39
 98232.04   5566.79   1500.21   0.00   2324.97   2324.97
 93449.18   5519.60   1475.20   0.00   2338.58   2338.58
88677.46   5472.59   1450.55   0.00   2352.24   2352.24
83916.77   5425.77   1426.26   0.00   2365.94   2365.94
79167.02   5379.13   1402.31   0.00   2379.68   2379.68
74428.11   5332.67   1378.71   0.00   2393.47   2393.47
69699.93   5286.39   1355.45   0.00   2407.30   2407.30
64982.39   5240.29   1332.52   0.00   2421.18   2421.18
60275.40   5194.36   1309.93   0.00   2435.10   2435.10
55578.85   5148.61   1287.66   0.00   2449.07   2449.07
50892.65   5103.04   1265.72   0.00   2463.07   2463.07
46216.70   5057.64   1244.09   0.00   2477.13   2477.13
41550.90   5012.42   1222.77   0.00   2491.22   2491.22
36895.17   4967.37   1201.77   0.00   2505.36   2505.36
32249.39   4922.49   1181.07   0.00   2519.55   2519.55
27613.49   4877.78   1160.67   0.00   2533.78   2533.78
22987.36   4833.23   1140.57   0.00   2548.06   2548.06
18370.90   4788.86   1120.75   0.00   2562.37   2562.37
13764.04   4744.65   1101.23   0.00   2576.74   2576.74
 9166.66   4700.61   1081.99   0.00   2591.15   2591.15
 4578.68   4656.73   1063.03   0.00   2605.60   2605.60
    0.00   4613.02   1044.35   0.00   2620.10   2620.10
    0.00      0.00      0.00   0.00   4593.09   4593.09
Present
 Value      Collateral


   826.45   11013.39
   818.15   11082.54
   810.20   11147.72
   802.61   11208.93
   795.36   11266.16
   788.47   11319.42
   781.93   11368.70
   775.74   11414.02
   769.91   11455.37
   764.43   11492.78
   759.30   11526.24
   754.52   11555.78
   750.08   11581.41
   745.99   11603.16
   742.23   11621.03
   738.81   11635.06
   735.72   11645.27
   732.95   11651.68
   730.50   11654.33
   728.36   11653.25
   726.52   11648.46
   724.98   11640.01
   723.72   11627.94
   722.75   11612.27
   722.04   11593.06
   721.60   11570.34
   721.40   11544.17
   721.45   11514.57
   721.73   11481.61
   722.23   11328.66
   722.70   11177.78
   723.14   11028.94
   723.56   10882.13
723.96   10737.30
724.33   10594.45
724.68   10453.52
725.00   10314.51
725.29   10177.39
725.56   10042.12
725.81    9908.69
726.03    9777.07
726.23    9647.23
726.40    9519.15
726.55    9392.81
726.67    9268.18
726.77    9145.24
726.85    9023.97
726.90    8904.34
726.93    8786.33
726.94    8669.92
726.93    8555.09
726.89    8441.82
726.82    8330.08
726.74    8219.85
726.63    8111.12
726.50    8003.86
726.35    7898.05
726.18    7793.68
725.98    7690.72
725.76    7589.15
725.53    7488.96
725.27    7390.13
724.98    7292.63
724.68    7196.46
724.36    7101.58
724.01    7008.00
723.65    6915.67
723.26    6824.60
722.86    6734.76
722.43    6646.14
721.99    6558.72
721.52    6472.47
721.04    6387.40
720.54    6303.48
720.01    6220.69
719.47   6139.02
718.91   6058.46
718.33   5978.98
717.73   5900.58
717.12   5823.24
716.48   5746.95
715.83   5671.69
715.16   5597.44
714.47   5524.20
713.77   5451.95
713.04   5380.67
712.30   5310.36
711.55   5241.00
710.78   5172.57
709.99   5105.07
709.18   5038.48
708.36   4972.79
707.52   4907.98
706.66   4844.06
705.80   4780.99
704.91   4718.77
704.01   4657.40
703.09   4596.85
702.16   4537.12
701.22   4478.20
700.26   4420.07
699.28   4362.72
698.29   4306.15
697.29   4250.34
696.27   4195.29
695.24   4140.97
694.20   4087.39
693.14   4034.53
692.07   3982.38
690.98   3930.93
689.88   3880.18
688.77   3830.11
687.65   3780.72
686.52   3731.99
685.37   3683.91
684.21   3636.48
683.04   3589.70
681.85   3543.54
680.66   3498.00
679.45   3453.07
678.23   3408.75
677.00   3365.02
675.76   3321.89
674.51   3279.33
673.25   3237.34
671.98   3195.92
670.69   3155.05
669.40   3114.74
668.10   3074.96
666.78   3035.72
665.46   2997.00
664.13   2958.81
662.79   2921.13
661.43   2883.95
660.07   2847.27
658.70   2811.08
657.32   2775.38
655.94   2740.16
654.54   2705.41
653.14   2671.12
651.72   2637.30
650.30   2603.92
648.87   2571.00
647.44   2538.51
645.99   2506.46
644.54   2474.84
643.08   2443.64
641.61   2412.86
640.14   2382.49
638.66   2352.52
637.17   2322.96
635.67   2293.79
634.17   2265.01
632.66   2236.62
631.15   2208.60
629.62   2180.96
628.10   2153.69
626.56   2126.78
625.02   2100.23
 623.48   2074.03
 621.93   2048.18
 620.37   2022.68
 618.81   1997.52
 617.24   1972.69
 615.67   1948.19
 614.09   1924.02
 612.51   1900.17
 610.92   1876.64
 609.33   1853.42
 607.73   1830.51
 606.13   1807.90
 604.52   1785.59
 602.91   1763.58
 601.30   1741.87
 599.68   1720.44
 598.06   1699.29
 596.43   1678.43
 594.80   1657.84
 593.17   1637.52
1031.25   1031.25
                   CMO: QUESTIONS

Please answer the following questions. You may find it useful to use
the formula section when answering questions.

1) How does a collateralized mortgage obligation alter the cashflow
  from the mortgages so as to shift the prepayment risk across various
  classes of bondholders?

2) "By creating a CMO, an issuer eliminates the prepayment risk
  associated with the underlying mortgages." Do you agree with this
  statement or not? Why?

3) In a CMO structure with several PAC bonds, explain why once
  the support bonds are paid off, the structure will be just like a
  sequential pay CMO.

4) Why in a steep yield curve environment can the creation of a
  CMO be attractive to an issuer?

5) Why in a CMO issue do you think an issuer would want to create
  as many short term classes as possible?

6) Why should the Weighted Average Coupon on the CMO bonds be
  less than the coupon on the collateral?

7) Use the following values to create a CMO issue;

           Collateral              1000000

                 Bond              Principal             Coupon
           -------------          -------------          -------------
           Tranche A                 250000                         6
           Tranche B                 250000                         8
           Tranche C                 250000                        10
           Tranche D                 250000                        12
           Residual                                                10

 Assume that the short term rate is for this type of bond is 6%, and
 the long rate is 12%. What yields should you use for the bonds?
 What is the profit on this issuance? How would it change if the
 yield curve is flat at 8%? ... at 10%?
                                 CMO: ANSWERS

1. By separating the cash flow sequentially, prepayments flow to the shortest maturity bond first.
         This provides security to the bondholders with longer maturity bonds.

2. The prepayment risk is not eliminated. It is reapportioned. Some classes of bond are protected
      from prepayment risk by other classes that absorb more prepayment risk. The total risk
      to all bondholders is approximately the same, actually slightly less.

3. Since support bonds, like PACs, exist to smooth the cash flow to the main bonds, if they are
      paid off, then all that remains in the main bond tranches that are present in a sequential
      pay CMO.

4. A CMO creates bonds with different attributes from a single collateral, which has a long
      average life. If the created bonds have a short term, they are discounted by the short-term
      discount rate, which is usually less than the long term discount rate. Therefore, the value
      of a collateral is less than the value of the bonds created, which allows for a profit to
      the issuer. The greater the differences between the long and short term rates, the
      greater the profit.

5. For the same reason as stated in #4.

6. The WAC represents the average interest rate on the CMO. If it is greater than the interest
      received from the collateral, than there may be a negative margin. In other words, you
      are paying more than you are receiving.

7. Since tranche A will pay off before tranche B, it has a shorter term, therefore use the
      short-term rate as its yield. Likewise use the long-term rates for the longest maturity
      bond D. For example, A=6%, B=8%, C=10%, D=12%, Res=10%. The total profit
      is $103,376. If the yield curve is flat the profit is zero. Steep yield curve environments
      stimulate the formation of CMOs.




       Collateral              1000000
      Bond       Principal      Coupon
-------------   -------------   -------------
Tranche A          250000                  6
Tranche B          250000                  8
Tranche C          250000                 10
Tranche D          250000                 12
Residual                                  10
ntially, prepayments flow to the shortest maturity bond first.


ted. It is reapportioned. Some classes of bond are protected




ds have a short term, they are discounted by the short-term
less than the long term discount rate. Therefore, the value
                                                   Tranche A Cash Flows

            9000.00


            8000.00


            7000.00


            6000.00
Cash Flow




            5000.00


            4000.00


            3000.00


            2000.00


            1000.00


               0.00
                      1   8   15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155 162 169 176
                                                                 Months
                                                   Tranche B Cash Flows

            9000.00


            8000.00


            7000.00


            6000.00
Cash FLow




            5000.00


            4000.00


            3000.00


            2000.00


            1000.00


               0.00
                      1   8   15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155 162 169 176
                                                                 Months
                                                   Tranche C Cash Flows

            9000.00


            8000.00


            7000.00


            6000.00
Cash Flow




            5000.00


            4000.00


            3000.00


            2000.00


            1000.00


               0.00
                      1   8   15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155 162 169 176
                                                                 Months
                                                   Tranche D Cash FLows

            7000.00



            6000.00



            5000.00



            4000.00
Cash FLow




            3000.00



            2000.00


            1000.00



               0.00
                      1   8   15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155 162 169 176
                                                                 Months
                                                    Residual Cash FLows

            5000.00

            4500.00

            4000.00

            3500.00

            3000.00
Cash Flow




            2500.00

            2000.00

            1500.00

            1000.00

             500.00

               0.00
                      1   8   15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155 162 169 176
                                                                 Months

								
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