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I need this answered with explanation 11) Suppose that the following values for a RMBS are correct for each assumption: Value of Security PSA Assumption
I need this answered with explanation
11) Suppose that the following values for a RMBS are correct for each assumption: Value of Security PSA Assumption 112.10 192 111.80 194 111.20 200 111.05 202 110.70 210 Assuming that the value of the security in the market is 111.80 based on 194 PSA. a) What is the prepayment sensitivity of this security? b) What does that mean? Explain in one paragraph. 11) Suppose that the following values for a RMBS are correct for each assumption: Value of Security PSA Assumption 112.10 192 111.80 194 111.20 200 111.05 202 110.70 210 Assuming that the value of the security in the market is 111.80 based on 194 PSA. a) What is the prepayment sensitivity of this security? b) What does that mean? Explain in one paragraphStep by Step Solution
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