Question: Please answer as soon as possible QUESTION 19 A CMO is being issued with 2 tranches: - Tranche A has $21 million in principal and

Please answer as soon as possible QUESTION 19 A CMO is

Please answer as soon as possible

QUESTION 19 A CMO is being issued with 2 tranches: - Tranche A has $21 million in principal and a 3.2% coupon. - Tranche B has $12 million in principal and a 3.2% coupon. The mortgages backing the security issued are FRM at a mortgage rate of 4.2% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. What is the cash flow to Tranche A investors in year 1? Round your answer to two decimal points (e.g. if your answer is $45,666.6666, write 45666.67)

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