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A CMO is being issued with 2 tranches: - Tranche A has $1 thousand in principal and a 5.1% coupon. - Tranche B has $4

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A CMO is being issued with 2 tranches: - Tranche A has $1 thousand in principal and a 5.1% coupon. - Tranche B has $4 thousand in principal and a 5.1% coupon. The mortgages backing the security issued are FRM at a mortgage rate of 5.1% 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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