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You can only answer the questions you know, but please dont answer irrelevant answers, thx You can only answer the questions you know, but please

You can only answer the questions you know, but please dont answer irrelevant answers, thx

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You can only answer the questions you know, but please dont answer irrelevant answers, thx

5. On October 1, 2005, Fannie Mae issued a mortgage pass-through security and the prospectus supplement stated the following: FANNIE MAE MORTGAGE-BACKED SECURITIES PROGRAM SUPPLEMENT TO PROSPECTUS DATED JULY 01, 2004 $464,927,576.00 ISSUE DATE OCTOBER 01, 2005 SECURITY DESCRIPTION FNMS 05.0000 CL-844801 5.0000 PERCENT PASS-THROUGH RATE FANNIE MAE POOL NUMBER CL-844801 CUSIP 31407YRW1 PRINCIPAL AND INTEREST PAYABLE ON THE 25TH OF EACH MONTH BEGINNING NOVEMBER 25, 2005 POOL STATISTICS WELLS FARGO BANK, N.A SELLER SERVICER WELLS FARGO BANK, N.A NUMBER OF MORTGAGE LOANS 1986 AVERAGE LOAN SIZE $234,312.06 MATURITY DATE 10/01/2035 WEIGHTED AVERAGE COUPON RATE 5.7500% WEIGHTED AVERAGE LOAN AGE 1 mo WEIGHTED AVERAGE LOAN TERM 360 mo WEIGHTED AVERAGE REMAINING MATURITY 359 mo WEIGHTED AVERAGE LTV 73% WEIGHTED AVERAGE CREDIT SCORE 729 Answer the questions below. a. What is the annualized interest rate paid to investors of this MBS? b. What is the average interest rate being paid by the borrowers in the loan pool for this security? c. Why do the above two interest rates differ? d. If an investor purchased $15 million principal of this security and, in some month, the cash flow available to be paid to the security holders (after all fees are paid) is $12 million, how much is the investor entitled to receive

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