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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
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 exnectedStep by Step Solution
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