The Following Information Is for a Collateralized Mortgage Obligation (CMO)

Multiple Choice

The following information is for a collateralized mortgage obligation (CMO) .Tranche A has a face value of $50 million and pays 6 percent annually.Tranche B has a face value of $50 million and pays 8 percent annually.All mortgages have maturities of 30 years. What are the principals outstanding on Tranches A and B, respectively, after the CMO distributes the $10 million of cash flows?

A) $50 million; $47 million.
B) $47 million; $50 million.
C) $48 million; $48 million.
D) $50 million; $48 million.
E) $50 million; $50 million.