can you please do it by excel.I give you a thumb up.

- A CMO is being issued with 2 tranches. The A tranche will consist of $50MM of principal and have a coupon of 7%. The B tranche will consist of $50MM of principal and have a coupon of 7%. The mortgages backing the security issued are FRM at 7% with 10 year maturities and annual payments (for simplicity). - Priority payments will be made to the A tranche and will include the promised coupon. The B class will only receive interest payments until the A class is repaid. - Assume there is no prepayment and no servicing fees. - A) Given the information presented above, what is the total cash flow to each class of investors in year 1 (i.e. How much will class A receive and how much will Class B receive)? - B) What is the balance of the Class A tranche at the end of year 3? - C) What is the balance of the Class B tranche at the end of year 7