Question: please answer number 6 Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100 jo00 cach. The mortgages have

please answer number 6

Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100 jo00 cach. The mortgages 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 two tranches in this CMO : tranch A issuct for $3,000,000 and tranche B issued for $3,000,000. How much cash flow do investors in tranche A receive in the first month? QUESTION 6 Use the same CMO as in the previous question and suppose that in month 10 , the heginaing balance on tranche A is $2,733.99091 and the beginning balange on tranche B is 53,000,000. How much cash flow do investors in tranche A receive in menth 10

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