Q3: A CMO is being issued with 2 tranches:

- Tranche A has $8 million in principal and a 3.2% coupon.

- Tranche B has $14 million in principal and a 3% coupon.

The mortgages backing the security issued are FRM at a mortgage rate of 5.9% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR.

What is the cash flow to Tranche A investors in year 1? Round your answer to two decimal points (e.g. if your answer is $45,666.6666, write 45666.67).