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please use formula ASSUMPTIONS: begin{tabular}{|l|r|r|r|} hline Number of mortgages in initial pool & & 75 hline Average mortgage balance & $100,000 hline Initial
please use formula
ASSUMPTIONS: \begin{tabular}{|l|r|r|r|} \hline Number of mortgages in initial pool & & 75 \\ \hline Average mortgage balance & $100,000 \\ \hline Initial mortgage pool balance & & $7,500,000 \\ \hline Prepayment rate & 10.00% \\ \hline Coupon/mortgage rate & 12.00% \\ \hline \end{tabular} (a) Price MBS's under different market interest rates. (a) (b) (c) (d) (c) \begin{tabular}{|c|c|} \hline 15 & \\ \hline 16 & \\ \hline 17 & Year \\ \hline 18 & 0 \\ \hline 19 & 1 \\ \hline 20 & 2 \\ \hline 21 & 3 \\ \hline 22 & 4 \\ \hline 23 & 5 \\ \hline \end{tabular} Principal Pool due to Principal and Total Principal Balance Prepayment Interest. Pmts and Interest Pool Factor $7,500,000 1 0.8430 0.7017 0.5744 0.4601 0.3574 \begin{tabular}{|c|c|} \hline J14 & 2^ \\ \hline & A \\ \hline 1 & \\ \hline 12 & \\ \hline 12 & (a) Price ) \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline 16 & \\ \hline 17 & Year \\ \hline 18 & 0 \\ \hline 19 & 1 \\ \hline 20 & 2 \\ \hline 21 & 3 \\ \hline 22 & 4 \\ \hline 23 & 5 \\ \hline 24 & 6 \\ \hline 25 & 7 \\ \hline 26 & 8 \\ \hline 27 & 9 \\ \hline 28 & 10 \\ \hline 29 & \\ \hline 30 & \\ \hline \end{tabular} \begin{tabular}{|l|r|c|c|} \hlineJ14 & v^ & x \\ \hline 1 & A & \multicolumn{1}{|c|}{fx} \\ \hline 13 & & C & D \\ \hline 33 & & & \\ \hline 34 & & Market Interest Rate & \\ \hline 35 & & & Price of the \\ \hline 36 & 9.00% & \\ \hline 37 & 11.00% & \\ \hline \end{tabular} (b) The pool factor at any given time is the outstanding principal balance divided by the initial principal of the pool. At the end of year 5 : Outstanding pool balance Initial pool balance Pool factor \#DIV/0! Market Interest Rate Price of the pool after 5 years 12.00% 56 rate are the original variables contained in the template. It must be changed for any other answer.) 57 Assuming that MPB does not service or guarantee the mortgages, the price obtained will be the PV of the total 58 cash flows less servicing and guarantee fees (column f ) discounted by the market rate of interest. 59 60 61 Data Input Box: \begin{tabular}{|l|l|r|} \hline 62 & Number of mortgages in initial pool & 75 \\ 63 & Average mortgage balance & $100,000 \\ \hline 64 & Initial mortgage pool balance & $7,500,000 \\ 65 & Prepayment rate & 10.00% \\ 66 & Coupon rate & 11.50% \\ 67 & Servicing and Guarantee Fee & 0.50% \\ \hline 68 & Total rate for P\&I on Pass Through & 12.00% \\ \hline 69 & Market interest rate & 10.50% \\ \hline \end{tabular} 70 Issuance of 100 Mortgage Pass Through Securities (MPT) (d) Issuance of 100 Mortgage Pass Through Securities: (Change 10.00% prepayment rate to 20.00% and 9.50% (d) Issuance of 100 Mortgage Pass Through Securities: (Change 10.00\% prepayment nate to 20.00% and 9.50% market interest rate to 8.00%. All other variables are constant.) ASSUMPTIONS: Data Input Box: \begin{tabular}{l|l|r|} \hline Number of mortgages in initial pool & 75 \\ \hline 0 & Average mortgage balance & $100,000 \\ & Initial mortgage pool balance & $7,500,000 \\ \hline 2 & Prepayment rate & 20.00% \\ 3 & Coupon rate & 11.50% \\ \hline 4 & Servicing and Guarantee Fee & 0.50% \\ & Total rate for P\&I on Pass Through & 12.00% \\ \hline 5 & & 8.00% \\ \hline \end{tabular} Issuance of 100 Mortgage Pass Through Securities (MPT) (a) (b) (c) (d) (e) (f) (g) Issuance of 100 Mortgage Pass Through Securities (MPT) (a) (b) (c) (d) (e) (9) ASSUMPTIONS: \begin{tabular}{|l|r|r|r|} \hline Number of mortgages in initial pool & & 75 \\ \hline Average mortgage balance & $100,000 \\ \hline Initial mortgage pool balance & & $7,500,000 \\ \hline Prepayment rate & 10.00% \\ \hline Coupon/mortgage rate & 12.00% \\ \hline \end{tabular} (a) Price MBS's under different market interest rates. (a) (b) (c) (d) (c) \begin{tabular}{|c|c|} \hline 15 & \\ \hline 16 & \\ \hline 17 & Year \\ \hline 18 & 0 \\ \hline 19 & 1 \\ \hline 20 & 2 \\ \hline 21 & 3 \\ \hline 22 & 4 \\ \hline 23 & 5 \\ \hline \end{tabular} Principal Pool due to Principal and Total Principal Balance Prepayment Interest. Pmts and Interest Pool Factor $7,500,000 1 0.8430 0.7017 0.5744 0.4601 0.3574 \begin{tabular}{|c|c|} \hline J14 & 2^ \\ \hline & A \\ \hline 1 & \\ \hline 12 & \\ \hline 12 & (a) Price ) \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline 16 & \\ \hline 17 & Year \\ \hline 18 & 0 \\ \hline 19 & 1 \\ \hline 20 & 2 \\ \hline 21 & 3 \\ \hline 22 & 4 \\ \hline 23 & 5 \\ \hline 24 & 6 \\ \hline 25 & 7 \\ \hline 26 & 8 \\ \hline 27 & 9 \\ \hline 28 & 10 \\ \hline 29 & \\ \hline 30 & \\ \hline \end{tabular} \begin{tabular}{|l|r|c|c|} \hlineJ14 & v^ & x \\ \hline 1 & A & \multicolumn{1}{|c|}{fx} \\ \hline 13 & & C & D \\ \hline 33 & & & \\ \hline 34 & & Market Interest Rate & \\ \hline 35 & & & Price of the \\ \hline 36 & 9.00% & \\ \hline 37 & 11.00% & \\ \hline \end{tabular} (b) The pool factor at any given time is the outstanding principal balance divided by the initial principal of the pool. At the end of year 5 : Outstanding pool balance Initial pool balance Pool factor \#DIV/0! Market Interest Rate Price of the pool after 5 years 12.00% 56 rate are the original variables contained in the template. It must be changed for any other answer.) 57 Assuming that MPB does not service or guarantee the mortgages, the price obtained will be the PV of the total 58 cash flows less servicing and guarantee fees (column f ) discounted by the market rate of interest. 59 60 61 Data Input Box: \begin{tabular}{|l|l|r|} \hline 62 & Number of mortgages in initial pool & 75 \\ 63 & Average mortgage balance & $100,000 \\ \hline 64 & Initial mortgage pool balance & $7,500,000 \\ 65 & Prepayment rate & 10.00% \\ 66 & Coupon rate & 11.50% \\ 67 & Servicing and Guarantee Fee & 0.50% \\ \hline 68 & Total rate for P\&I on Pass Through & 12.00% \\ \hline 69 & Market interest rate & 10.50% \\ \hline \end{tabular} 70 Issuance of 100 Mortgage Pass Through Securities (MPT) (d) Issuance of 100 Mortgage Pass Through Securities: (Change 10.00% prepayment rate to 20.00% and 9.50% (d) Issuance of 100 Mortgage Pass Through Securities: (Change 10.00\% prepayment nate to 20.00% and 9.50% market interest rate to 8.00%. All other variables are constant.) ASSUMPTIONS: Data Input Box: \begin{tabular}{l|l|r|} \hline Number of mortgages in initial pool & 75 \\ \hline 0 & Average mortgage balance & $100,000 \\ & Initial mortgage pool balance & $7,500,000 \\ \hline 2 & Prepayment rate & 20.00% \\ 3 & Coupon rate & 11.50% \\ \hline 4 & Servicing and Guarantee Fee & 0.50% \\ & Total rate for P\&I on Pass Through & 12.00% \\ \hline 5 & & 8.00% \\ \hline \end{tabular} Issuance of 100 Mortgage Pass Through Securities (MPT) (a) (b) (c) (d) (e) (f) (g) Issuance of 100 Mortgage Pass Through Securities (MPT) (a) (b) (c) (d) (e) (9) Step by Step Solution
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