1. Answer all parts (a) to (e) of this question. (a) [5 marks] In terms of loans repayment schedules, differentiate between Bullet repayment and Mortgage-style repayment schedules. (b) [12 marks] How does mortgage securitisation work? (c) [15 marks] A dealer can purchase a commercial paper with a face value of 500,000. The paper is 250 days from maturity and the discount yield is 7.2 per cent. Using the 360-day count basis, calculate the current price of the paper. (d) [8 marks] What is the difference between foreign bonds and international (Euro) bonds? (e) [10 marks] A dealer can purchase for 787,000 a commercial paper which has a face value of 800,000. The paper is 91 days from maturity. Using the 365-day count convention, calculate the bond equivalent yield. 1. Answer all parts (a) to (e) of this question. (a) [5 marks] In terms of loans repayment schedules, differentiate between Bullet repayment and Mortgage-style repayment schedules. (b) [12 marks] How does mortgage securitisation work? (c) [15 marks] A dealer can purchase a commercial paper with a face value of 500,000. The paper is 250 days from maturity and the discount yield is 7.2 per cent. Using the 360-day count basis, calculate the current price of the paper. (d) [8 marks] What is the difference between foreign bonds and international (Euro) bonds? (e) [10 marks] A dealer can purchase for 787,000 a commercial paper which has a face value of 800,000. The paper is 91 days from maturity. Using the 365-day count convention, calculate the bond equivalent yield