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Its the question from mortgage and asset back securities- Fixed income and derivative markets (Subject) Teddy Tom has a mortgage loan for 1.5 years with
Its the question from mortgage and asset back securities- Fixed income and derivative markets (Subject)
Teddy Tom has a mortgage loan for 1.5 years with principal amount of $100. Mortgage payments are paid every 6 months. He has decided to make 50% prepayment at t=0.5. The annual mortgage rate is 3%, semi- annually compounded. Find the first schedules total payment and the ending balance for teddy tom at t=0.5.
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