Question: A CMO. has two tranches, Tranche A and Tranche B, both with $100 million face value and 4.5% annual coupon rate. If at the end

A CMO. has two tranches, Tranche A and Tranche B, both with $100 million face value and
4.5% annual coupon rate. If at the end of the first year, the CMO trustee receives total cash
flows of $13.8 million, how much will be paid to Tranche A investors (in million dollars)?
(Please round your answer to two decimal places in terms of million dollars)

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