Question
A CMO has been issued with 3 tranches and a residual (the residual owns no principal at origination). At origination (same set-up at previous question):
A CMO has been issued with 3 tranches and a residual (the residual owns no principal at origination). At origination (same set-up at previous question):
- Tranche A investors own $6,000,000 of principal with a coupon rate of 3.50%.
- Tranche B investors own $4,000,000 of principal with a coupon rate of 3.70%.
- Tranche Z investors own $2,000,000 of principal with a coupon rate of 4.50%.
The residual carries no principal and receives remaining payments. At origination, the mortgages backing the security issued are FRM with mortgage rate of 4.50% with 30 year maturities and MONTHLY payments. Assume no servicing/guarantee fee and no prepayments. Remember to adjust rates to monthly if necessary. Round your answers to cents.
In month 1, what is the mortgage pool's scheduled interest?
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
