1. Consider the following of Freddie Mac REMIC-CMO. The collateral for the REMIC is $100,000,000. The underlying mortgages have a contract rate of 7.75% and maturity of 360 months. The CMO's will pay monthly and the tranche allocations and the tranche coupons are as follows: Calculate cash flows and balances for each tranche the first three months. Assume that the monthly SMM is constant at .5% and that the servicing fee is 37.5 basis points