Question: A CMO is being issued with 2 tranches: Tranche A has $60 million in principal and a 3.5% coupon. - Tranche Bhas $13 million in

A CMO is being issued with 2 tranches: Tranche A has $60 million in principal and a 3.5% coupon. - Tranche Bhas $13 million in principal and a 4.2% coupon. The mortgages backing the security issued are FRM at a mortgage rate of 4.4% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. What is the dollar amount of prepayments in year 17 Round your answer to two decimal points (e.g. if your answer is $4,566.6666, write 4566.67). A CMO is being issued with 2 tranches: Tranche A has $60 million in principal and a 3.5% coupon. - Tranche Bhas $13 million in principal and a 4.2% coupon. The mortgages backing the security issued are FRM at a mortgage rate of 4.4% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. What is the dollar amount of prepayments in year 17 Round your answer to two decimal points (e.g. if your answer is $4,566.6666, write 4566.67)

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