Loan servicing-profits if financial guarantees are purchased

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Reference no: EM131176530

You establish a trust to securitize $1 billion in mortgages that paid 12.45 percent interest and the average interest rate on the tranches used was 10.16 percent. The financial guarantees on the loans cost 1.23 percent. How much money would you have available to pay for loan servicing and profits if the financial guarantees are purchased?

Reference no: EM131176530

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