Question: A CMO has two tranches, Tranche A and Tranche B, both with $40,000 face value and 7.6% annual coupon rate. If at the end of

A CMO has two tranches, Tranche A and Tranche B, both with $40,000 face value and 7.6% annual coupon rate. If at the end of the first year, the CMO trustee receives total cash flows of $9120, how much will be paid to Tranche B investors?

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