Given the following information, please calculate the Tranche Z balance at the beginning of year 2. (Assume annual payments and no prepayments)

$75,000,000 pool, 10 year maturity, 8% interest

Tranche A: $30,000,000, coupon rate of 6%

Tranche B: $30,000,000, coupon rate of 6.75%

Tranche Z: $15,000,000, coupon rate of 8%

• Tranche Z: Paid Last, interest accrues until other tranches are paid in full.
• Tranche A: Principal, Prepayments, & Interest Received First.
• Tranche B: Interest Only Until Tranche A is Paid.