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please show work in excel along with each equation/formula used to get the answers Create a schedule of predicted cash flow for the following pass-through
please show work in excel along with each equation/formula used to get the answers
Create a schedule of predicted cash flow for the following pass-through (MPT). - Mortgage pool: $3 million - All mortgages are FRM at 8% per year, 5-year maturity, yearly payment - Pass-through: $3 million, yearly payment - Fee payment: 0.5% of outstanding balance b) What is the value of this pass-through at 7% discount rate, assuming that there is prepayment with the prepayment rates below? - Assume prepayment rate: 0.5% of the mortgage pool for the 1st year, 1% for the 2nd year, and 1.25% for the remaining years Calculate the answer by filling in the columns below. Create a schedule of predicted cash flow for the following pass-through (MPT). - Mortgage pool: $3 million - All mortgages are FRM at 8% per year, 5-year maturity, yearly payment - Pass-through: $3 million, yearly payment - Fee payment: 0.5% of outstanding balance b) What is the value of this pass-through at 7% discount rate, assuming that there is prepayment with the prepayment rates below? - Assume prepayment rate: 0.5% of the mortgage pool for the 1st year, 1% for the 2nd year, and 1.25% for the remaining years Calculate the answer by filling in the columns belowStep by Step Solution
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