QUESTION 1 Consider an MPT that is backed by 100 mortgages with average balance of $350,000 and monthly payment. The MPT has a WAC = 5% and WAM = 60 months. There is no servicing fee on this security. Assuming the prepayment model of CPR=5% and market rate is 3%, how much should this security sell for? (Use Excel for this question) 10 points Save Answer Consider an MPT with WAC=5% with par value of $5,000,000. There is a servicing fee of 0.4% a year for this security. Mark all statements that are true: If market rate is 7%, the MPT will sell above par value U if market rate is 5%, the MPT will sell at $5,000,000 If market rate is 7%, higher projected prepayment rates will result in higher valuation for the MPT If market rate is 4.6%, higher projected prepayment rates will result in higher valuation for the MPT if me If market rate is 4.6%, the MPT will sell at $5,000,000 QUESTION 1 Consider an MPT that is backed by 100 mortgages with average balance of $350,000 and monthly payment. The MPT has a WAC = 5% and WAM = 60 months. There is no servicing fee on this security. Assuming the prepayment model of CPR=5% and market rate is 3%, how much should this security sell for? (Use Excel for this question) 10 points Save Answer Consider an MPT with WAC=5% with par value of $5,000,000. There is a servicing fee of 0.4% a year for this security. Mark all statements that are true: If market rate is 7%, the MPT will sell above par value U if market rate is 5%, the MPT will sell at $5,000,000 If market rate is 7%, higher projected prepayment rates will result in higher valuation for the MPT If market rate is 4.6%, higher projected prepayment rates will result in higher valuation for the MPT if me If market rate is 4.6%, the MPT will sell at $5,000,000