Question
Assume that you are considering purchasing a pass-through security, with the following characteristics. PSA 288 Principal Balance 25,000,000 WAC 5.400% Pass-Through Coupon 5.150% Regular Payment
Assume that you are considering purchasing a pass-through security, with the following characteristics.
| PSA | 288 | |
| Principal Balance | 25,000,000 | |
| WAC | 5.400% | |
| Pass-Through Coupon | 5.150% | |
| Regular Payment | 141,998.88 | |
| Original term | 360 | |
| # of months remaining | 350 | |
The price of the bond is $24,500,000. In your first month of ownership, what is the prepayment?
Round your answer to the nearest dollar and DO NOT ROUND YOUR INTERMEDIATE CALCULATIONS.
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Regulation Of Securities Markets And Transactions
Authors: Patrick S. Collins
1st Edition
0470601965, 978-0470601969
