Solution-Difference between the quoted ytm and the expected

Difference between the quoted ytm and the expected return

Reference no: EM131734683

Question: a. What is the difference between the quoted YTM and the expected return (going-in IRR) for the typical mortgage investors?

b. When will the expected return (over the realistic prepayment horizon) exceed the YTM in a default-free loan?

Reference no: EM131734683

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Difference between the quoted ytm and the expected return

Reference no: EM131734683

Reference no: EM131734683

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