Question 9 please
QUESTION 6 Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100.000 each. The mortgages have monthly payments with WAM - 15 years and WAC = 4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are two tranches in this CMO: tranch A issued for $3,000,000 and tranche B issued for $3,000,000. How much cash flow do investors in tranche A receive in the first month? 34,000 QUESTION 7 Using the same CMO as in Question and suppose that in month 10, the beginning balance on tranche A is $2,733 990 91 and the beginning balance on tranche B is $3.000.000. How much cash flow do investors in tranche A receive in month 10? Page 3 42,324.53 QUESTION 8 Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100.000 each. The mortgages have monthly payments with WAM - 15 years and WAC = 4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are three tranches in this CMO: tranch A issued for $2.000.000 tranche B issued for $2.000.000, and a Z bond issued for $2.000.000. How much cash flow do investors in tranche A receive in the first month? 22666.667 QUESTION 8 Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100.000 each. The mortgages have monthly payments with WAM = 15 years and WAC4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are three tranches in this CMO: tranch A issued for $2,000,000, tranche B issued for $2,000,000, and a Z-bond issued for $2,000,000. How much cash flow do investors in tranche A receive in the first month? 22666,667 QUESTION 9 Consider the same CMO as in Question 9 and suppose that in month 10, the beginning balance on tranche A is $1.682.409.07, the beginning balance on tranche Bis $2,000,000.00 and the beginning balance on Z is $2,051,581.84. How much cash flow do investors in tranche A receive in month 10? QUESTION 6 Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100,000 cach. The mortgages have monthly payments with WAM = 15 years and WAC = 4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are two tranches in this CMO: tranch A issued for $3,000,000 and tranche B issued for $3,000,000. How much cash flow do investors in tranche A receive in the first month? 34,000 QUESTION 7 Using the same CMO as in Question 7 and suppose that in month 10, the beginning balance on tranche A is $2,733,990.91 and the beginning balance on tranche B is $3,000,000. How much cash flow do investors in tranche A receive in month 10? 42,324.53 QUESTION 8 Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100.000 each. The mortgages have monthly payments with WAM = 15 years and WAC = 4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are three tranches in this CMO: tranch A issued for $2,000,000, tranche B issued for $2,000,000, and a Z-bond issued for $2,000,000. How much cash flow do investors in tranche A receive in the first month? 22666.667 QUESTION 9 Consider the same CMO as in Question 9 and suppose that in month 10, the beginning balance on tranche A is $1,682.409.07, the beginning balance on tranche B is $2,000,000.00 and the beginning balance on Z is $2,051,581.84. How much cash flow do investors i tranche A receive in month 10? Page 3
