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D Use the following information to answer the next three questions: Assume I purchase $850,000,000 of 20-year, fixed-rate residential mortgages with an average interest rate
D Use the following information to answer the next three questions: Assume I purchase $850,000,000 of 20-year, fixed-rate residential mortgages with an average interest rate of 3.75%. I intend to issue 3 sequential pay tranches backed by these mortgages Tranche A is $300,000,000 and promises a 2.5% return. Tranche B is $250,000,000 and promises a 3.00% return. Tranche Z is $225,000,000 and promises a 3.75% return. For simplicity, assume these mortgages and the pool have annual payments and assume there are no prepayments. D Question 31 3 pts Question 31 3 pts Compute the principal scheduled to be paid into the pool in year 2. $29.292.783 O $30,391,262 O $31,530,934 $32.745,365 O $33,819.542 3 pts D Question 32 Compute the interest that should be paid to Tranche Z in year 2 (but is instead paid to A). $7,624,357 $8,076,517 $8,437,500 $8,753,906 $9,082.178 Question 33 4 pts Compute the total payment to Tranche A in year 2. $38,201.911 $41,914,377 $45,230,283 O $45,701,911 O $46,191.226
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