Imagine a mortgage pool that consists of 100 $1,200 mortgages. (No, this is not 1910. It is just that $120,000 worth of mortgages is an easier number to work with than $120,000,000). The mortgages pay an average of 6.00%, compounded monthly. Imagine that Collateralized Mortgage Obligations (CMOs) consisting of four tranches are issued on this mortgage pool. The first obligation is to pay the interest on all four tranches. tranche A will receive an interest rate of 5.28%, tranche B will receive an interest rate of 5.52%, tranche C will receive an interest rate of 5.76%, and tranche D will receive an interest rate of 6.72%. Assume initially that the principal owed for each tranche is $30,000.

If the total payments for a month exceeds the total accrued interest owed to all four tranches, then the principal on tranche A will be paid down. Only if the principal owed to tranche A is completely paid off, will any extra payments for the month be used to pay off principal owed to tranche B. Only if the principal owed to tranches A and B are completely paid off, will any extra payments for the money be used to pay off principal owed to tranche C. And finally, only if the principal owed to tranches A, B, and C are completely paid off, will any extra payments for the month be used to pay off principal owed to tranche D. Assume the total payments for the mortgage pool are as shown below for the first six months: Month 1: $ 9,600 Month 2: $ 15,600 Month 3: $ 18,000 Month 4: $ 24,000 Month 5: $ 28,800 Month 6: $ 14,400

Please determine the total monthly payments for each tranche and put the answers in the table below:

Tenche A payment Trenche B payment Trenche C payment Trenche Z payment

month 1

month 2

month 3

month 4

month 5

month 6