A CMO is being issued with 2 tranches: - Tranche A has $16 million in principal and a 4.3% coupon. - Tranche B has $10 million in principal and a 4.3% coupon. The mortgages backing the security issued are FRM at a mortgage rate of 4.3% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. Remember, the sum of tranches' principal is the total principal (balance) principal owed by the mortgage pool.