2. The hypothetical sequential-pay structure with floater, inverse floater, and accrual bond classes is specified in Exhibit 12-6 on page 258. Tranche Par Amount Coupon rate A $194,500,000 7.5% B $36,000,000 7.5% FL $72,375,000 7.5% IFL $24,125,000 7.5% Z(accrual) $73,000,000 7.5% The collateral for FL and IFL is the C tranche specified in Exhibit 12-4 on page 255. In a specific month, the balance for tranche C is USD 5,747,754. We know that the payment to the principal is USD 3,057,282, and the interest payment is USD35,923. The annualized 1-month LIBOR rate for that month is 4%. Compute the principal and coupon payments to FL and IFL in that month.

3. A CMO is very similar to the one illustrated on page 252-253 (Exhibit 12-2), except that in month 100, the remaining balance of tranche B is USD 442,350. What are the principal and interest payments to Tranche C in month 100?