Using the MBS collateral program: a. Determine the values for the following yield analysis matrix for the
Question:
Using the MBS collateral program:
a. Determine the values for the following yield analysis matrix for the PO and IO strip MBSs in Question 23.
b. Given PSA speeds increase as rates decrease, determine the values for the IO strip MBS for the following discount rate and PSA pairs.
c. Comment on the interest rate and value relation you observe.
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