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PLEASE ANSWER PART C *** QUESTION 18 ***** QUESTION 16 Consider an MPT with the following characteristics: Number of mortgages in the pool: 50 All
PLEASE ANSWER PART C *** QUESTION 18 *****
QUESTION 16 Consider an MPT with the following characteristics: Number of mortgages in the pool: 50 All 50 mortgages are fully amortizing 15 year FRM with yearly payments All mortgages have a 5% interest rate Average mortgage balance: $400,000 Prepayment rate is CPR = 5% Servicing fee taken off the initial pool balance in every period is 0.5% Multi-part question. Please refer to characteristics above from Question 16. c) How much of the scheduled payment received is attributable to principal in year 1Step by Step Solution
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