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Assume I purchase $750,000,000 of 20-year, fixed-rate residential mortgages with an average interest rate of 5.75%. I intend to issue 3 sequential pay tranches backed

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Assume I purchase $750,000,000 of 20-year, fixed-rate residential mortgages with an average interest rate of 5.75%. I intend to issue 3 sequential pay tranches backed by these mortgages. Tranche A is $275,000,000 and promises a 4.25% return. Tranche B is $200,000,000 and promises a 5.00% return. Tranche Z is $225,000,000 and promises a 5.75% return. Compute the amortization sheet and the Tranche A cash flows for the first 3 years of the pool. For simplicity, assume these mortgages and the pool have annual payments. Assume I purchase $750,000,000 of 20-year, fixed-rate residential mortgages with an average interest rate of 5.75%. I intend to issue 3 sequential pay tranches backed by these mortgages. Tranche A is $275,000,000 and promises a 4.25% return. Tranche B is $200,000,000 and promises a 5.00% return. Tranche Z is $225,000,000 and promises a 5.75% return. Compute the amortization sheet and the Tranche A cash flows for the first 3 years of the pool. For simplicity, assume these mortgages and the pool have annual payments

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