Number 33

Who has contributory responsibility for the credit A. Banks B. Government C. Borrowers D. All of the above The measurement of remaining term of a fixed income instrument using the present value is: A. Convexity B. Average Life C. Duration D. WAM A bank will allow a maximum DSCR of 1.25 x on a mortgage with an 8.0 % rate and 30 year amortization. The NOI for the property is $1.2 million. Current cap rates in the market are approximately 8%. Given the size of the mortgage you can get, if you have $4 million of equity, how much can you pay for the property? How much total principal payment will a pass through structure receive in the fourth period if the underlying collateral had a 6% rate on 30 year amortization, assuming zero servicing if the PSA is 1.50? What bond rate do you need to be equivalent to a mortgage with a 7% rate? If duration is - 14.99% and convexity is 74.090 what will a change of +/- 1.50% do lo the price of the bond? What is the floater cap where there are $425 million of floating bonds out of $500 million in total bonds. The collateral coupon is 8% and floating spread is 2.50%? What size accrual bond do you need if there is a 36 month lockout a rate of 6% and a PAC of 350 million