Question: Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the
Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an outstanding balance of 68,000 and B has an outstanding balance of 47,000. What is the principal payment towards tranche B in this month? beginning month balance Prepayment scheduled principal payment 11,000 Interest to MBS investors 31 $551,000 5,000 44,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
