Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please use the EXCEL FORMULAS. Thank you! The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an average

image text in transcribed

Please use the EXCEL FORMULAS. Thank you!

The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an average balance of $100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 12% and all loans require monthly payments. Question 1: What price should Blue Algae obtain if the pool is sold immediately to an investor with a required annual return of 11% and no nrenavment is exnected? The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an average balance of $100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 12% and all loans require monthly payments. Question 1: What price should Blue Algae obtain if the pool is sold immediately to an investor with a required annual return of 11% and no nrenavment is exnected

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Auditing Practices In Africa

Authors: Mariaan Roos, Lesley Stainbank

1st Edition

1928357431, 978-1928357438

More Books

Students also viewed these Accounting questions

Question

Which of the following is an approved stream cipher for TLS 1 . 3 ?

Answered: 1 week ago