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A CMO is being issued with 2 tranches: - Tranche A has $22 million in principal and a 2.6% coupon. - Tranche B has $14

A CMO is being issued with 2 tranches: - Tranche A has $22 million in principal and a 2.6% coupon. - Tranche B has $14 million in principal and a 5.8% coupon. The mortgages backing the security issued are FRM at a mortgage rate of 6.5% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. What is the cash flow to Tranche A investors in year 1? Round your answer to two decimal points (e.g. if your answer is $45,666.6666, write 45666.67).

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