A CMO has been issued with3tranches and a residual.At origination:<\/p>
- Tranche A investors own$107 million of principal with a coupon rate of3.50%.<\/p>
- Tranche B investors own$27million of principal with a coupon rate of3.70%.<\/p>
- Tranche Z investors own$9million of principal with a coupon rate of4.50%.<\/p>
The residual carries$1million and receives all residual payments.Mortgages backing the security issued are fully amortizing fixed ratewith mortgage rateof4.50%with30yearmaturities and monthly payments.Assume no servicing\/guarantee fee and no prepayments.<\/p>
How much cash flow do investors in the Z-tranche receive in the first year?Round your answers to two decimal points(e.g.ifyouransweris$56000.0444,write56000.04)<\/p>", "transcribed_text": "", "related_book": { "title": "Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective", "isbn": "1337614689, 1337614688, 9781337668262, 978-1337614689", "edition": "9th Edition", "authors": "James M. Wahlen, Stephen P. Baginski, Mark Bradshaw", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1711.jpg", "uri": "\/textbooks\/financial-reporting-financial-statement-analysis-and-valuation-a-strategic-perspective-9th-edition-1711", "see_more_uri": "" }, "free_related_book": { "isbn": "3030526968", "uri": "\/textbooks\/the-achaean-federation-in-ancient-greece-history-political-and-economic-organisation-warfare-and-strategy-1st-edition-978-3030526962-278691", "name": "The Achaean Federation In Ancient Greece History Political And Economic Organisation Warfare And Strategy", "edition": "1st Edition" }, "question_posted": "2024-06-05 15:02:41", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/explore-the-web-site-of-british-airways-wwwbacom-consider-how", "description": "Explore the web site of British Airways (www.ba.com). 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