There is a CMO with the following anticipated cash flows generated from a mortgage pool with annual payments. For ease of computation, the cash flows are rounded to integers. The cash flows come from a mortgage pool that consists of $5M of total principal at origination, 4% mortgage rates, 3 yr FRMs with annual payments and with no prepayments. The CMO consists only of a PO and a 10 tranche with no guarantee/servicer fees, Year Beginning Balance Scheduled Payment Scheduled Interest Scheduled Principal Ending Balance $5,000,000 $1,801,743 2 $1,601,743 $3,398,257 $3,398,257 $1,801,743 $135,930 7 $1,732,445 $1,732,445 $1,801,743 $69,298 $1,732,445 $ 1 2 3 What is the cash flow to the PO tranche in Year 2 to two decimal places? QUESTION 20 3 (Same set-up at previous question.) There is a CMO with the following anticipated cash flows generated from a mortgage pool with annual payments. For ease of computation, the cash flows are rounded to integers. The cash flows come from a mortgage pool that consists of $5M of total principal at origination, 4% mortgage rates, 3 yr FRMs with annual payments and with no prepayments. The CMO consists only of a PO and a 10 tranche with no guarantee/servicer fees. Year Beginning Balance Scheduled Payment Scheduled Interest Scheduled Principal Ending Balance 1 $5,000,000 $1,801,743 ? $1,601,743 $3,398,257 2 $3,398,257 $1,801,743 $135,930 $1,732,445 $1,732,445 $1,801,743 $69,298 $1,732,445 7 3 $ What is the cash flow to the 10 tranche in Year 1 to two decimal places? There is a CMO with the following anticipated cash flows generated from a mortgage pool with annual payments. For ease of computation, the cash flows are rounded to integers. The cash flows come from a mortgage pool that consists of $5M of total principal at origination, 4% mortgage rates, 3 yr FRMs with annual payments and with no prepayments. The CMO consists only of a PO and a 10 tranche with no guarantee/servicer fees, Year Beginning Balance Scheduled Payment Scheduled Interest Scheduled Principal Ending Balance $5,000,000 $1,801,743 2 $1,601,743 $3,398,257 $3,398,257 $1,801,743 $135,930 7 $1,732,445 $1,732,445 $1,801,743 $69,298 $1,732,445 $ 1 2 3 What is the cash flow to the PO tranche in Year 2 to two decimal places? QUESTION 20 3 (Same set-up at previous question.) There is a CMO with the following anticipated cash flows generated from a mortgage pool with annual payments. For ease of computation, the cash flows are rounded to integers. The cash flows come from a mortgage pool that consists of $5M of total principal at origination, 4% mortgage rates, 3 yr FRMs with annual payments and with no prepayments. The CMO consists only of a PO and a 10 tranche with no guarantee/servicer fees. Year Beginning Balance Scheduled Payment Scheduled Interest Scheduled Principal Ending Balance 1 $5,000,000 $1,801,743 ? $1,601,743 $3,398,257 2 $3,398,257 $1,801,743 $135,930 $1,732,445 $1,732,445 $1,801,743 $69,298 $1,732,445 7 3 $ What is the cash flow to the 10 tranche in Year 1 to two decimal places