Consider the following of Freddie Mac REMIC$-$CMO. The collateral for the REMIC is $$100,000,000.$ The underlying mortgages have a contract rate of $7\mathrm{.}75\%$ and maturity of $360$

months. The CMO's will pay monthly and the tranchev allocations and the tranche coupons are as

follows:

Calculate cash flows and balances for each tranche the first three months. Assume that the monthly

SMM is constant at $\mathrm{.}5\%$ and that the servicing fee is $37\mathrm{.}5$ basis points.