Q5: A CMO is being issued with 2 tranches:

- Tranche A has $19 million in principal and a 5.1% coupon.

- Tranche B has $17 million in principal and a 4.5% coupon.

The mortgages backing the security issued are FRM at a mortgage rate of 7.9% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR.

In year 1, what is the cash flow to investors in Tranche B? Round your answer to two decimal points (e.g. if your answer is $50,999.4532, write 50999.45).