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Consider the same CMO as in Question 16 and suppose that in month 10, the beginning balance on tranche A is $1,200,596, the beginning balance
Consider the same CMO as in Question 16 and suppose that in month 10, the beginning balance on tranche A is $1,200,596, the beginning balance on tranche B is $3,000,000 and the beginning balance on Z is $1,550,232. How much cash flow do investors in tranche A receive in month 10?
[Note that you can sum the beginning balance of each tranche in month 10 to get how much the mortgage pool has in beginning balance in month 10 because what is owed by the mortgage pool equals what is owed to investors]
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