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NEED THIS ANSWERED ASAP PLEASE Problem III: Mortgage Backed Securities (15 points) First Mortgage Investors purchases a $100,000 Face value MBS carrying a coupon of
NEED THIS ANSWERED ASAP PLEASE
Problem III: Mortgage Backed Securities (15 points) First Mortgage Investors purchases a $100,000 Face value MBS carrying a coupon of 4 percent and a maturity of 30 years. What is the monthly payment on the MBS? What is the remaining principal balance on the MBS if it survives 1 year? 3-years? 5 years? 30 years? How much interest is collected by the investor if the MBS survives 5 years? What will the MBS sell for in each of the following yield-survival scenarios? Years Survived 1 3 5 30 Yield 2% 3% 4% 6%Step by Step Solution
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