Question: Suppose that you have a $100M two-tranche, sequential-pay CMO, with 360 months WAM and 5% WAC, where the principal is equally split between the two

Suppose that you have a $100M two-tranche, sequential-pay CMO, with 360 months WAM and 5% WAC, where the principal is equally split between the two tranches. If the pass- through coupon is 4%, and assuming 165 PSA, what is the total cash flow to the senior tranche in the first month? 1

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