Question 20 (1 point) A newly issue CMO's mortgage pool has a balance of $87.59 million with an average interest rate of 11.29% 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 $44.48 million with an annual coupon of 7.93%. Tranche Z has a principal balance of $36.95 million with an annual coupon of 11.29%. What is Tranche A's capital balance at the end of year 1? $26.32 million $26.98 million $27.64 million $28.30 million $28.96 million Question 20 (1 point) A newly issue CMO's mortgage pool has a balance of $87.59 million with an average interest rate of 11.29% 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 $44.48 million with an annual coupon of 7.93%. Tranche Z has a principal balance of $36.95 million with an annual coupon of 11.29%. What is Tranche A's capital balance at the end of year 1? $26.32 million $26.98 million $27.64 million $28.30 million $28.96 million