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A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $27 thousand of principal with a coupon

A CMO has been issued with 3 tranches and a residual. At origination:

- Tranche A investors own $27 thousand of principal with a coupon rate of 3.50%.

- Tranche B investors own $29 thousand of principal with a coupon rate of 3.70%.

- Tranche Z investors own $6 thousand of principal with a coupon rate of 4.50%.

- The residual carries $1 thousand of principal and receives all residual payments.

Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments.

How much cash flow do investors in the Z-tranche receive in the first month? Round your answers to two decimal points (e.g. if your answer is $56000.0444, write 56000.04).

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