The previous problem asked for the price to Johnson at a market rate of 9% and reads as follows. The Johnson S&L originated a pool containing 100 three-year fixed interest rate mortgages with an average balance of $50,000 each. All mortgages in the pool carry a coupon of 10%. (For simplicity, assume that all mortgage payments are made annually at 10% pooled mortgage interest rate). Johnson would now like to sell the pool to FNMA. Assuming a constant annual prepayment rate of 8% (for simplicity, assume that prepayments are based on the pool balance at the end of the preceding year and begin at the end of year 1). If we assume that ONE year has passed since the date in previous problem, and if market interest rates are 9%, what price can Johnson obtain now? (round your final answer to a whole number) End of Year Pool Balance Principal Due to Prepayment Principal and Interest Payments Total Principal and Interest Pool Factor $5,000,000 $0 $0 $0 1.0000 0 1 2. 3 $0 $0 0.0000 The Johnson S & L originated a pool containing 100 three-year fixed interest rate mortgages with an average balance of $50,000 each. All mortgages in the pool carry a coupon of 10%. (For simplicity, assume that all mortgage payments are made annually at 10% pooled mortgage interest rate). Johnson would now like to sell the pool to FNMA. Assuming a constant annual prepayment rate of 8% (for simplicity, assume that prepayments are based on the pool balance at the end of the preceding year and begin at the end of year 1). what is the price that Johnson could obtain if market interest rates were 9%? (round your final answer to a whole number) End of Year Pool Balance Principal Due to Prepayment Principal and Interest Payments Total Principal and Interest Pool Factor $5,000,000 $0 $0 $0 1.0000 0 1 2 3 $0 $0 0.0000 The previous problem asked for the price to Johnson at a market rate of 9% and reads as follows. The Johnson S&L originated a pool containing 100 three-year fixed interest rate mortgages with an average balance of $50,000 each. All mortgages in the pool carry a coupon of 10%. (For simplicity, assume that all mortgage payments are made annually at 10% pooled mortgage interest rate). Johnson would now like to sell the pool to FNMA. Assuming a constant annual prepayment rate of 8% (for simplicity, assume that prepayments are based on the pool balance at the end of the preceding year and begin at the end of year 1). If we assume that ONE year has passed since the date in previous problem, and if market interest rates are 9%, what price can Johnson obtain now? (round your final answer to a whole number) End of Year Pool Balance Principal Due to Prepayment Principal and Interest Payments Total Principal and Interest Pool Factor $5,000,000 $0 $0 $0 1.0000 0 1 2. 3 $0 $0 0.0000 The Johnson S & L originated a pool containing 100 three-year fixed interest rate mortgages with an average balance of $50,000 each. All mortgages in the pool carry a coupon of 10%. (For simplicity, assume that all mortgage payments are made annually at 10% pooled mortgage interest rate). Johnson would now like to sell the pool to FNMA. Assuming a constant annual prepayment rate of 8% (for simplicity, assume that prepayments are based on the pool balance at the end of the preceding year and begin at the end of year 1). what is the price that Johnson could obtain if market interest rates were 9%? (round your final answer to a whole number) End of Year Pool Balance Principal Due to Prepayment Principal and Interest Payments Total Principal and Interest Pool Factor $5,000,000 $0 $0 $0 1.0000 0 1 2 3 $0 $0 0.0000
