Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribedThe 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 holders

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Laurence S. Seidman

1st Edition

0073375748, 978-0073375748

More Books

Students also viewed these Finance questions