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A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $3 thousand of principal with a coupon
A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $3 thousand of principal with a coupon rate of 3.50%. - Tranche B investors own $3 thousand of principal with a coupon rate of 3.70%. - Tranche Z investors own $7 thousand of principal with a coupon rate of 4.8%. - The residual carries $1 thousand and receives all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.8% with 30 year maturities and monthly_payments. Assume no servicing/guarantee fee and no prepayments. What is the balance on the Z-tranche at the end of the first month (same as the balance at beginning of the second month)? Round your answers to cents (e.g. if your answer is $560.0444, write 560.04). A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $3 thousand of principal with a coupon rate of 3.50%. - Tranche B investors own $3 thousand of principal with a coupon rate of 3.70%. - Tranche Z investors own $7 thousand of principal with a coupon rate of 4.8%. - The residual carries $1 thousand and receives all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.8% with 30 year maturities and monthly_payments. Assume no servicing/guarantee fee and no prepayments. What is the balance on the Z-tranche at the end of the first month (same as the balance at beginning of the second month)? Round your answers to cents (e.g. if your answer is $560.0444, write 560.04)
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