Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
ABC Bank originated a pool of containing 500 three-year fixed-rate mortgages with loan amount of $150,000 each. All mortgages in the pool carry a rate of 7% with annual payments. The guarantee and servicing fee is 1%. ABC Bank would like to sell the pool to investors via Mortgage Pass Through (MPT) security, 200,000 shares will be issued.
a. If market interest rate is 6%, what is the price for each share of MPT security? Assuming there is no prepayment and default. How much are the cash flows to the investor each year?
b. Assuming that there is 5% prepayment and no default, If market interest rate is 6%, what is the price for each share of MPT security? How much are the cash flows to the investor each year?
The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. What ..
Atlantis Fisheries issues zero coupon bonds on the market at a price of $489 per bond. These are callable in 6 years at a call price of $580. Using semi annual compounding, what is the yield to call for these bonds?
The following are the timing assumptions for your retirement planning: you will save with annual payments into a retirement savings account. The following are the investment and consumption assumptions for your retirement planning: your investments w..
Calculate the bond equivalent yield and effective annual return on a jumbo CD that is 125 days from maturity and has a quoted nominal yield of 6.66 percent.
You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper. 52-WEEK YLD VOL NET HI LO STOCK (DIV) % PE 100s CLOSE CHG 72.78 53.67 RJW 1.30 2.0 15 17,902 ?? − .38. What was the closing price for thi..
You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 10.75 percent semiannual coupon bonds are selling at a price of $814.61. If these bonds are the only debt outstanding for the firm. What is the curren..
Why does the balance sheet report historical cost information instead of market values for assets? Please explain
Define and discuss the importance of the time value of money concepts including compounding (future value), discounting (present value), and annuities. Why do organization leaders need to understand these concepts?
Which of the following statements is most correct concerning the relationship between a company’s cash budget and its income statement? a. if net income is positive, then cash flow could be positive or negative but if net income is negative, cash flo..
Since my daughter will arrive soon, I would like to set up a regular payment into an interest bearing account that will allow my daughter to attend college with little or no debt. My estimate is that I will need to have $50, 000 by the time she is 18..
Tech Industries, a contract manufacturer of circuit boards, is evaluating an investment in a new production line to handle the growing demand from its customers, who produce consumer electronic products. Based on reasonable growth assumptions, the NP..
Discuss the difference between substitutes and complements and the difference between normal goods and inferior goods. How do managers and business owners use these concepts? Please provide real world examples.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd