It has to be in an excel format. I have the template, but don't know how to paste it on here but here is the question.
Question 1 Update the annual MPT template posted to accurately reflect distributions of monthly mortgage payments. Then calculate the following: a.) Set the constant prepayment rate equal to 0% and calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. b.) Set the constant prepayment rate equal to 10% and calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. c.) Compare the monthly vs. annual investor values when the prepayment rate is equal to 10%. Are the annual or monthly values different? If so, why? d.) Set the constant prepayment rate equal to 25% and calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. Question 2 The Public Securities Association (PSA) Prepayment Model has become the industry standard. Create a copy of the worksheet from question 1 and modify it so that it uses a PSA Prepayment Model instead of a constant prepayment rate. Then calculate the following: a.) Using the standard PSA prepayment model (100% PSA) calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. b.) Using a 75% PSA prepayment model, calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. c.) Using a 150% PSA prepayment model, calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. d.) Create a graph that displays the 150% PSA rate (see example below of 100% PSA). 100% PSA SON 40 SON 10 ********** Prement Question 1 Update the annual MPT template posted to accurately reflect distributions of monthly mortgage payments. Then calculate the following: a.) Set the constant prepayment rate equal to 0% and calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. b.) Set the constant prepayment rate equal to 10% and calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. c.) Compare the monthly vs. annual investor values when the prepayment rate is equal to 10%. Are the annual or monthly values different? If so, why? d.) Set the constant prepayment rate equal to 25% and calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. Question 2 The Public Securities Association (PSA) Prepayment Model has become the industry standard. Create a copy of the worksheet from question 1 and modify it so that it uses a PSA Prepayment Model instead of a constant prepayment rate. Then calculate the following: a.) Using the standard PSA prepayment model (100% PSA) calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. b.) Using a 75% PSA prepayment model, calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. c.) Using a 150% PSA prepayment model, calculate the value of the cash flows to the individual investor using a discount rate of 8.0%, 9.0%, and 10.0%. d.) Create a graph that displays the 150% PSA rate (see example below of 100% PSA). 100% PSA SON 40 SON 10 ********** Prement
