Prepayment on a pool of mortgages increases

Assignment Help Financial Management

Reference no: EM131060747

If a CMO has 3 tranches, A, B, and Z (an accrual tranche), as well as a residual class, answer the following question?

If the prepayment on a pool of mortgages increases from PSA 100 to PSA 150, what would happen to the expected maturity of the Z class?

Increase, decrease or stay the same?

Reference no: EM131060747

Questions Cloud

Write a summary about the plant benefit you chose : Write a 250 word summary about the plant benefit you chose. Be sure to describe what type of plant it is. Where is it found? How is it beneficial to humans?

Discuss scholarly views on the nature and types of theory : Explain how the theory adds or may add to our understanding of your field and/or research topic - discuss and analyze the literature on two areas of controversy or unanswered questions related to the theory.

What is the estimated price change as a percentage : What is the estimated price change, as a percentage, for this bond if the market interest rate declined by 20bp?

Discuss reasons for measuring health behaviors : Discuss reasons for measuring health behaviors. Identify at least two methods to assess/measure smoking behaviors among adolescents in your community.

Prepayment on a pool of mortgages increases : If a CMO has 3 tranches, A, B, and Z (an accrual tranche), as well as a residual class, answer the following question? If the prepayment on a pool of mortgages increases from PSA 100 to PSA 150, what would happen to the expected maturity of the Z cla..

What is the macaulay duration of the security : What is the Macaulay duration of the following security?

Compute the fourier coefficients for the fourier series : MAST20029 Engineering Mathematics Assignment. Use MATLAB to help compute the Fourier coefficients bn for the Fourier series F(t). Give your answer as a simplified expression for bn in terms of n

Determine the orientation of the neutral axis : Determine the orientation of the neutral axis and calculate the maximum tensile stress σt and maximum compressive stress σc in the beam. Use the following numerical data: height h= 200 mm, width b 90 mm, constant thickness t = 15 mm, and θp= 19.2°..

Describe how you will evaluate effectiveness of your program : Provide a sample of an evaluation tool that you have developed or modified. Discuss how you will know if your program or intervention is effective. Refer back to your program goal and objectives.

User Account

All Pages