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 annual payments promised to Tranche A and Tranche B,respectively,assuming no prepayments and non-amortization?

A) $3,632,446;$4,000,000.
B) $4,000,000;$3,000,000.
C) $3,000,000;$4,000,000.
D) $3,632,446;$4,441,372.