1. A certain mortgage pool has $900 million in par value. The senior (“A”) tranche has 30% credit support, and the next level (“B”) has 20% credit support. How much par value was issued in the B tranche? Question options:
$80 million
$85 million
$90 million
$95 million
2. What is the Effective Rent (under 10% discount rate assumption) for a 7-year net lease with rent fixed at $22/SF, in which the landlord agrees to give the tenant one year free rent up front and to pay for $10/SF worth of tenant improvements?
$14.40
$16.03
$16.26
$16.15