Consider a CMO with Interest Only (IO) and Principal Only (PO) tranches that is backed by a pool of $5,000,000 fully amortizing mortgages. Mortgages are fixed rate at 9% with 4 year maturity and annual payments. Suppose that the market rate for comparable securities (investor discount rate) is 6%. Suppose that no prepayment is expected and there are no servicing fees.

How much should the investors value the PO security? Use the amortization table below and round your answer to two decimal points (e.g. if your answer is $1,234,567.8901, write 1234567.89).