Question
Maria is an analyst for an insurance company that invests in residential mortgage pass-through securities. Maria reviews the monthly cash flow of one underlying mortgage
Maria is an analyst for an insurance company that invests in residential mortgage pass-through securities. Maria reviews the monthly cash flow of one underlying mortgage pool to determine the cash flow to be passed through to investors. She finds that Total principal paid including prepayment is $1,910,542; that Scheduled principal to be paid before prepayment is $910,542; that Gross coupon interest paid is $3,562,500; Servicing fee is $337,500; and that other fees for guaranteeing the issue are $58,333. Based on Marias findings, the total cash flow to be passed through to the investors is closest to
A. $4,473,042. | ||
B. $5,077,209. | ||
C. $5,473,042. | ||
D. $1,910,542 | ||
E. $3,562,500 |
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