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You purchase an MBS 9, 30 year with a face value of $100,000 a) What is your monthly payment? b) What is the interest
You purchase an MBS 9, 30 year with a face value of $100,000 a) What is your monthly payment? b) What is the interest and principal earned over 5 years c) What will the MBS be priced at the following yield/yrs survived scenarios Yield Yrs Survived Price 6 percent 1 year 8 percent 5 years 9 percent 8 years ? ? d) What would the price of a US 9, 30 years bond with a face value of $100,000 sell for at the above yield scenarios.
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