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Question 30-31 use the following information: . A pass-through is issued with the following characteristics: Mortgage pool: $5 million All mortgages are FRM at 10%

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Question 30-31 use the following information: . A pass-through is issued with the following characteristics: Mortgage pool: $5 million All mortgages are FRM at 10% per year, 3-year maturity, yearly payment Pass-through: $5 million yearly payment Fee payment: 1.5% of outstanding loan balance Assume prepayment rate: 3% of the mortgage pool for the 1" year, 5% for the 2 year . . 30. Fill in the blanks in the table below: Year Beginning Mortgage balance payment Interest Principal payment payment Pre- payment Fee payment Payment to investors Ending balance 1 $5,000,000 $2,010,574 (A) $1,510,574 (B) $75.000 $2,085,574 $3.339.426 2 $3.339.426 (C) $333.943 $1,590,203 $166,971 (D) $2,041,026 (E) 3 3 $1.740,477 $158,225 (F) SO $23,734 $1.716,743 SO (A) = = Write in the answer sheet provided (B) = Write in the answer sheet provided (C)= Write in the answer sheet provided (D) = Write in the answer sheet provided 7 (E) - Write in the answer sheet provided (F) - Write in the answer sheet provided 31. What is the value of this pass-through at 8% discount rate? a) $5.000.000 b) $5,043,743 c) $4,339,025 d) $4.761.703 ion

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