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of cash, and $8 million of funding is through equity? C. Show a simple balance sheet with total assets and total liabilities and equity, assuming

of cash, and $8 million of funding is through equity? C. Show a simple balance sheet with total assets and total liabilities and equity, assuming this is the only project funded by the bank. 5. Consider $200 million of 30-year mortgages with a coupon of 10 percent paid quarterly. (LG 25-4) a. What is the quarterly mortgage payment? b. What are the interest repayments over the first year of life of the mortgages? What are the principal repayments? Construct a 30-year CMO using this mortgage pool as collateral. There are three tranches (where A offers the least protection against prepayment and C offe quarterly payments of 9 percent; a $100 million tranche B makes quarterly payments of 10 percent, and a $50 million tranche C makes quarterly payments 6. C. d. Assuming no amortization of principal and no prepayments, what are the total promised coupon payments to the three classes? What are the principal payme year? e. If, over the first year, the trustee receives quarterly prepayments of $10 million on the mortg

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