A bank uses its mortgage loans as collateral to issue two different trenches of securities (CMOs) in mortgage markets, Trench A and Trench B. The information is given below. If the profit is $1 million, please estimate the loan value for Trench A. Assume the interest is made annually.

Interest rate: 4%

Maturity: 6 years

CMOs: Par value Interest rate

Trench A ??? 2.5%

Trench B $60 million 3.8%