Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The information above are the values used to find the information below. These are the answers, but I need to know the function values on
The information above are the values used to find the information below. These are the answers, but I need to know the function values on how to get these answers. Thank you!
Topic 14 Problem Loans in the pool Amount $106 million. 10.5% Contract interest rate Original maturity of loans 30 years Prepayment assumption Yr. 1: 1.3%, Yr. 2: 3.7%, Yr. 3: 5.75%, Yr. 4: 6% (100 PSA') Tranche Amount at risk Coupon rate paid 9.50% Tranche A 30,000,000 30,000,000 9.75% Tranche B 25,000,000 10.25% Tranche C 10.50% Tranche Z 15,000,000 Equity 6,000,000 Total $106,000,000 For the first four years, show the 1. End-of-year pool balance a. 2. Total funds available for distribution 3. End-of-year amount owed to security holders Topic 14 Problem Loans in the pool Amount $106 million. 10.5% Contract interest rate Original maturity of loans 30 years Prepayment assumption Yr. 1: 1.3%, Yr. 2: 3.7%, Yr. 3: 5.75%, Yr. 4: 6% (100 PSA') Tranche Amount at risk Coupon rate paid 9.50% Tranche A 30,000,000 30,000,000 9.75% Tranche B 25,000,000 10.25% Tranche C 10.50% Tranche Z 15,000,000 Equity 6,000,000 Total $106,000,000 For the first four years, show the 1. End-of-year pool balance a. 2. Total funds available for distribution 3. End-of-year amount owed to security holdersStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started