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please help An investor is considering the purchase of either an 1O or PO strip from a CMO offering. The portion of the mortgage pool

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An investor is considering the purchase of either an 1O or PO strip from a CMO offering. The portion of the mortgage pool backing this tranche consists of $1,000,000 in mortgages with a remaining maturity of 10 years and an 8% interest rate. Assuming annual payments and a 20% prepayment rate (based on the pool balance at the end of the preceding year), what would be the price for the 10 if investors were to require a 6% yield to maturity. Your Answer: Answer What would be the price for the PO if investors were to require a 6% yield to maturity? Your

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