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Given the following information on a MPT (same set-up as previous question), what is the servicing fee payment in year 3? (Round your answer to
Given the following information on a MPT (same set-up as previous question), what is the servicing fee payment in year 3? (Round your answer to the nearest dollar)
• 10 year FRM, fully amortizing, annual payments.
• No prepayment or default
• 100 loans in the pool
• Average starting balance of $500,000.00/loan
• Mortgage rate 4.50%
• Servicing fee of 0.50% of starting outstanding pool balance
What is the total cash flow available to investors in year 2?
• 10 year FRM, fully amortizing, annual payments.
• No prepayment or default
• 100 loans in the pool
• Average starting balance of $500,000.00/loan
• Mortgage rate 4.50%
• Servicing fee of 0.50% of starting outstanding pool balance
What is the total cash flow available to investors in year 2?
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The servicing fee payment in year 3 is calculated as follows Servicing fee payment se 500000loan 180 ...
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
