Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an outstanding balance of 63,000 and B has an outstanding balance of 45,000. What is the principal payment towards tranche B in this month? Enter your answer in thousands of dollars, with no decimals. For example, if your answer is $40,000, then enter 40. month 63 beginning. balance $585,000 scheduled principal payment $10,000 Prepayment $17,000 Interest to MBS investors $57,000
Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an outstanding balance of 63,000 and B has an outstanding balance of 45,000. What is the principal payment towards tranche B in this month? Enter your answer in thousands of dollars, with no decimals. For example, if your answer is $40,000, then enter 40. month 63 beginning. balance $585,000 scheduled principal payment $10,000 Prepayment $17,000 Interest to MBS investors $57,000
Chapter6: Managing Cash Flow
Section: Chapter Questions
Problem 4DQ
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Question
Transcribed Image Text:Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D.
Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an
outstanding balance of 63,000 and B has an outstanding balance of 45,000. What is the principal
payment towards tranche B in this month?
Enter your answer in thousands of dollars, with no decimals. For example, if your answer is $40,000,
then enter 40.
month
63
beginning.
balance
$585,000
scheduled principal
payment
$10,000
Prepayment
$17,000
Interest to MBS
investors
$57,000
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