Question
A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 10% interest rate.
A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 10% interest rate. What is the present value of the PO class if the discount/market rate is 11%? Excel is recommended for this problem.
Answer:2641383.59
10 points
QUESTION 2
Same set-up as Q1. A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 10% interest rate. What is the present value of the IO class if the discount/market rate is 11%? Excel is recommended for this problem.
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
