Annual payments-interest rate on the underlying mortgages

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Reference no: EM13909483

Given a MPT with a starting pool balance of $1,000,000, whose underlying collateral is a group of 10 year FRMs with annual payments, interest rate on the underlying mortgages=10%, servicing fees=0.5%, and prepayment projected to be 10% annually, what cash flows can an investor expect in year 1 if she has a 15% ownership interest in the MPT?

Reference no: EM13909483

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