Question: A CMO has two tranches, Tranche A and Tranche B, both with $100 million face value and 7.9% annual coupon rate. If at the end

A CMO has two tranches, Tranche A and Tranche B, both with $100 million face value and 7.9% annual coupon rate. If at the end of the first year, the CMO trustee receives total cash flows of $22 million, how much will be paid to Tranche A investors (in million dollars)?

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