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Consider $7,000,000 of 15-year mortgages with a coupon of 13 percent paid quarterly. Consider a 15-year CMO using this mortgage pool as collateral. There are

Consider $7,000,000 of 15-year mortgages with a coupon of 13 percent paid quarterly.Consider a 15-year CMO using this mortgage pool as collateral. There are three tranches (where A offers the least protection against prepayment and C offers the most). A $1,750,000 tranche A makes quarterly payments of 12 percent; a $3,500,000 tranche B makes quarterly payments of 13 percent; and a $1,750,000 tranche C makes quarterly payments of 14 percent.If the trustee receives quarterly prepayments of $200,000 on the mortgage pool, which of the following is NOT true?

Tranche A receives an interest payment of $45,326 in Quarter 2.

Tranche A receives a principal payment of $239,130 in Quarter 1.

Tranche A receives an interest payment of $52,500 in Quarter 1.

Tranche A has a remaining balance of $1,264,567 at the end of Quarter 1.

Tranche A receives a total payment of $291,630 in Quarter 1.

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