What is balance on tranche b

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A CMO has been issued with 3 tranches and a residual. At origination:

- Tranche A investors own $14,746,960 of principal with a coupon rate of 3.50%.

- Tranche B investors own $5,581,367 of principal with a coupon rate of 3.70%.

- Tranche Z investors own $9,421,220 of principal with a coupon rate of 4.50%.

The residual carries $1 million and receives all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments.

What is balance on tranche B at the end of the first month (same as the balance at beginning of the second month)? Round your answers to cents (e.g. if your answer is $56000.0444, write 56000.04).

Reference no: EM132704974

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