1.Consider a mortgage pool with principal of $20 million. The maturity is 30 years with a monthly...
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1.Consider a mortgage pool with principal of $20 million. The maturity is 30 years with a monthly mortgage payment of 10 per cent per annum.
(Assume no prepayments.)
What is the monthly mortgage payment (100 per cent amortising) on the pool of mortgages?
If the mortgage-backed security insurance fee is 60 basis points and the servicing fee is 40 basis points, what is the yield on the pass-through security?
What is the monthly payment on the pass-through security in part (b)?
Calculate the first monthly servicing fee paid to the originating banks. LO 8.6
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Related Book For
Financial Institutions Management A Risk Management
ISBN: 9781743073551
4th Edition
Authors: Helen Lange, Anthony Saunders, Marcia Millon Cornett
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