Question: Consider a sequential pay CMO that is backed by 60 mortgages with avenige balance of $100,000 each. The mongages have monthly payments with waM =15

Consider a sequential pay CMO that is backed by 60 mortgages with avenige balance of $100,000 each. The mongages have monthly payments with waM =15 years and WAC=4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are three tranches in this CMO: tranch A iswed for $2,000,000, tranche B issued for $2,000,900, and a Z bond issued for $2,000,000. How much cach flow do investors in tranche A receive in the finst moneth

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