Sequential-pay principle comes from where? received, therefore, structure, 500

dirk01

Exhibit 5 (FI page 383), shows a simple sequential pay structure of $400 par, with 4 tranches. Each tranche coupon is 7.5%, with tranche A par amount = $194,500,000. Interest received by this whole structure is 0.075 * $400m /12 = $2.5m.

Since tranche A makes up 48.625% of the whole structure ($194,500,000 / $400m), therefore it gets 0.48625 * $2,500,000 = $1,215,625, which is correctly shown in the schedule on next page. No problem here.

But they show that tranche A gets a principle payment of $709,923, which I can't see from where! The remaining interest payment ($2.5m - $1,215,624 = $1,284,375) gets distributed to the other tranches, and this is correctly shown on the schedule. So from where have they pulled the $709,923?