Question
Q1. Question Assume the single month mortality rate of a mortgage (and the MBS) is 0.009 in the first month. We also have the following
Q1. Question
Assume the single month mortality rate of a mortgage (and the MBS) is 0.009 in the first month. We also have the following data regarding the MBS:
Original balance: $100,000,000
Pass-through rate: 9.0%
WAM: 360 months
WAC: 12%
What is theprepaymentin the first month of the MBS?
Group of answer choices
700,710.10
899,571.12
899,267.44
899,742.49
None of the above
Q.2>
A 14-year 1,000 par value bond is redeemable at maturity for 1,100. It is bought at a price to yield an annual effective rate of 3.15%.
Determine the book value of the bond 9 years after issue if the amount for amortization of premium in the 5th coupon payment is 6.25.
Excel answer and formula sheet for all required
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
