Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the

Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an outstanding balance of 86,000 and B has an outstanding balance of 31,000. What is the principal payment towards tranche B in this month?

month beginning balance scheduled principal payment Prepayment Interest to MBS investors
20 $631,000 30,000 13,000 46,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance For Non Financial Managers

Authors: Dora Hancock

1st Edition

0749480017, 9780749480011

More Books

Students also viewed these Finance questions