Question: its real estate question QUESTIONS Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100.000 each. The mortgages have

its real estate question

QUESTIONS Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100.000 each. The mortgages have monthly payments with WAN 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 issued for $2,000,000, tranche B issued for $2,000,000, and a Z bond issued for $2,000,000. How much cash flow do investors in tranche A receive in the first month? 22666.67 QUESTION 10 Consider the same CMO as in Question 9 and suppose that in month 10, the beginning balance on tranche Aix S1,682,409.07. the beginning balance on tranche B is $2.000.000.00 and the beginning balance on Z is $2,051.581.84. How much cash flow do investors in tranche A receive in month 107

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