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A CMO is being issued with 2 tranches: - Tranche A has $58 million in principal and a 3.9% coupon. - Tranche B has $11

A CMO is being issued with 2 tranches: - Tranche A has $58 million in principal and a 3.9% coupon. - Tranche B has $11 million in principal and a 4.4% coupon. The mortgages backing the security issued are FRM at a mortgage rate of 4% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. What is the dollar amount of prepayments in year 1? Round your answer to two decimal points (e.g. if your answer is $4,566.6666, write 4566.67).

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