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please do 1-5 Calculate the cash flows for the fcllowing CMO with sequental pay tranches. Conaider that the poyments into the pool from mortgage borrower
please do 1-5
Calculate the cash flows for the fcllowing CMO with sequental pay tranches. Conaider that the poyments into the pool from mortgage borrower ccour annually and that there is no prepayment. These mortgages are al FHA mortgogos; all are fully amortizing mortgages with a maturity of 5 years and an interest rate of 11%4. Assume that Tranche Z s. inieresis are alocaled to paid Tranches A and B until principal in A and B get fully paid. (15 points) 1. Calculate the weighted avarage coupon rate of this deal. (1 points) 2. Calculate the Lasn Schedule for the mortgage pool (3 points) 3. Calculate the cash flow for Tranches A, 8 and Z. (6 points) 4. Calculate the cashifow for the residual class (Equity position). (3 points) 5. Calculate the IRR of the residual class. (2 points) Calculate the cash flows for the fcllowing CMO with sequental pay tranches. Conaider that the poyments into the pool from mortgage borrower ccour annually and that there is no prepayment. These mortgages are al FHA mortgogos; all are fully amortizing mortgages with a maturity of 5 years and an interest rate of 11%4. Assume that Tranche Z s. inieresis are alocaled to paid Tranches A and B until principal in A and B get fully paid. (15 points) 1. Calculate the weighted avarage coupon rate of this deal. (1 points) 2. Calculate the Lasn Schedule for the mortgage pool (3 points) 3. Calculate the cash flow for Tranches A, 8 and Z. (6 points) 4. Calculate the cashifow for the residual class (Equity position). (3 points) 5. Calculate the IRR of the residual class. (2 points) Step by Step Solution
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