Question 1 (1 point) A newly issue CMO's mortgage pool has a balance of $52.39 million with an average interest rate of 10.09% payable annually over a five-year term. There are two tranches. Priority payments will be made to Tranche A and will include the coupon, all amortization from the mortgage pool, and the interest that will be accrued to Tranche Z until Tranche A's principal is fully repaid. Tranche Z will accrue interest without any cash payments until the senior tranche is repaid. It will receive current interest and principal payments at that time. Tranche A has a principal balance of $26.78 million with an annual coupon of 6.73%. Tranche Z has a principal balance of $21.15 million with an annual coupon of 10.09%. What is Tranche A's capital balance at the end of year 1? $14.47 million $14.87 million $15.28 million $15.68 million $16.08 million Question 1 (1 point) A newly issue CMO's mortgage pool has a balance of $52.39 million with an average interest rate of 10.09% payable annually over a five-year term. There are two tranches. Priority payments will be made to Tranche A and will include the coupon, all amortization from the mortgage pool, and the interest that will be accrued to Tranche Z until Tranche A's principal is fully repaid. Tranche Z will accrue interest without any cash payments until the senior tranche is repaid. It will receive current interest and principal payments at that time. Tranche A has a principal balance of $26.78 million with an annual coupon of 6.73%. Tranche Z has a principal balance of $21.15 million with an annual coupon of 10.09%. What is Tranche A's capital balance at the end of year 1? $14.47 million $14.87 million $15.28 million $15.68 million $16.08 million