Derive the price of the floating rmbs tranche

Assignment Help Finance Basics
Reference no: EM133001865

Using the information in the table below, derive the price of the following floating RMBS tranche. Assume that you can price the tranche as a fixed-rate bond: RMBS Tranche WAL 5 Years Coupon Frequency Monthly Yield to WAL 4.50% Quoted Margin 2.00% BBSW 1 Month 0.12% Face Value $100 Credit Rating AA-

Reference no: EM133001865

Questions Cloud

What are the growth prospects for company : a) In this case, what are the growth prospects for your company, all other things being equal?
What will be the firm cash cycle for freddie fries : An average accounts payable balance of $37,000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle?
What are covenants in a loan agreement : What are covenants in a loan agreement? What are the objectives of covenants? How can these covenants be negative? Positive?
Discuss the relationship between risk and return : Discuss the relationship between risk and return. Argue about what kind of risk preference could add the most value to an investment.
Derive the price of the floating rmbs tranche : Using the information in the table below, derive the price of the following floating RMBS tranche. Assume that you can price the tranche as a fixed-rate bond: R
What rate per quarter is the investment promising : Fast Street Investment Company offers you an investment that promises to triple your money in 63 months. Interest is compounded quarterly.
Determine the total cost of the snow man project : Determine the total cost of the Snow Man project. Whispering Winds Delights manufactures a wide variety of holiday and seasonal decorative
Characteristics between mutual funds and managed products : What are the key differences in characteristics between mutual funds and managed products?
Deploying iot devices in the network : Addressing the most common issues associated to deploying IoT devices in the network - extending your threat mapping and counter measures searching

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the initial consideration amount

If the nominal value is $1 million, the current discount rate is 10% and the remaining tenor is 50 days

  What is the net present value of the investment in the

a new furnace for your small factory will cost 4500 a year to install and will require ongoing maintenance

  What was the delta ray brands net income after-tax

selling general and administrative expenses totaled $1,416,400 for the year, and cost of goods sold was $10,963,600 for the year. Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax?

  What insight does this give you into the company financial

Determine the fixed assets to net worth ratio for the construction companyin Figures 6-1 and 6-2. What insight does this give you into the company's financial operations?

  Goldfarb cancer research institute just received a 3

goldfarb cancer research institute just received a 3 million gift to cover the salary for a permanent research

  What is the nal of the lease

Assume that Big Sky Mining will continue to use the machine beyond the expiration of the lease and must purchase it at an estimated residual value of $250,000 at the end of the 4th year. What is the NAL of the lease?

  Calculate the expected return and variance

Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index with weights as follows: Calculate the utility levels of each portfolio of Question 1 for an investor with A = 2. What do you conclude

  Your firms cost of goods sold cogs average 2000000 per

your firms cost of goods sold cogs average 2000000 per month and it keeps inventory equal to 50 of its monthly cogs on

  What was the arithmetic average return

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 11 percent, -10 percent

  Calculate profit it products are sold

What are the unit costs in this setting? Calculate profit it products are sold for $ 130 per unit.

  Discuss why the finance director believes

Discuss why the Finance Director believes the above scheme may favourably improve Alpha's earnings per share and gearing.

  What type of situation would inferential statistics be more

what type of situation would inferential statistics be more useful than descriptive statistics? why do you think

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd