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69 Given the following information on a Mortgage-Backed Bond assuming annual compounding, perform the calculations indicated. Pool Data Bond Data Amount $100 million Amount $90
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Given the following information on a Mortgage-Backed Bond assuming annual compounding, perform the calculations indicated. Pool Data Bond Data Amount $100 million Amount $90 million Coupon rate 11% Coupon rate 10 % Maturity 30 years Maturity 20 years 100% PSA 1.3% first year Rate of Return on Fund Balance 7% Default rate 0.5% first 5 years Bond Issuer's Equity $10,000,000 What is the end-of-year fund balance for year 1? O $3,789,461 $5,293,289 $4,502,460 0 $4,497,488 O $2,294,041Step by Step Solution
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