Pass-through mortgage backed securities backed

Assignment Help Financial Management

Reference no: EM132052881

Suppose you own 15% of pass-through mortgage backed securities backed by a mortgage pool of 500 mortgage loans. Each loan is a 30-year, fixed rate, constant payment mortgage loan with 8% mortgage rate and a $200,000 initial balance.

a. How much do you expect to receive from the pool at the end of the first month, assuming there is no prepayment?

b. Next month, suppose 200 loans are prepaid. How much will you receive from the pool?

Reference no: EM132052881

Questions Cloud

Use the AFN equation to forecast Broussard additional funds : Use the AFN equation to forecast Broussard's additional funds needed for the coming year.

Balance in retained earnings for triplette : What is the year-end 2008 balance in retained earnings for Triplette?

Shares of common stock-weighted average cost of capital : Aaron's Rentals has 58,000 shares of common stock outstanding at a market price of $36 a share. What is the firm's weighted average cost of capital?

The cash conversion cycle refers : The cash conversion cycle refers to the.

Pass-through mortgage backed securities backed : Suppose you own 15% of pass-through mortgage backed securities backed by a mortgage pool of 500 mortgage loans.

Changes in market value of equity between the two banks : What accounts for the differences in the changes in market value of equity between the two banks?

Binomial lattice to value nonredeemable bond : How do you use a binomial lattice to value a nonredeemable bond, a callable bond, and a putable bond?

Cost of pound of bagged ground coffee sold at this cafe : What costs are included in the cost of a pound of bagged ground coffee sold at this cafe? Seperate these costs into direct materials, direct labor,

What is portfolio return : If you have a portfolio made up of 25 percent Company O, 40 percent Company V, and 35 percent Company M, what is your portfolio return?

User Account

All Pages