What is the starting pool balance for tranche a investors

Assignment Help Business Management
Reference no: EM132906037

A CMO is being issued with 2 tranches:- Tranche A has $20 million in principal and a 6.2% coupon.

- Tranche B has $13 million in principal and a 6.2% coupon.

The mortgages backing the security issued are FRM at a mortgage rate of 6.2% with 10 year maturities and annual payments. There is no guarantee/servicer fee. Prepayment is assumed to be 5% CPR. Remember in this case, the sum of the two tranches' principal is the total amount of principal owed by the mortgage pool.

What is the starting pool balance for Tranche A investors in year 2? (Note: same as the ending pool balance for Tranche A investors in year 1) Round your answer to two decimal points (e.g. if your answer is $45,666.6666, write 45666.67).

Reference no: EM132906037

Questions Cloud

What is wearable technology : What is wearable technology? what are the pros and cons of wearable technology? How does it contribute to development?
Role of cultural education in international business : What is the role of cultural education in international business?
What is the amount of the debit to retained earnings : The market price of Concord's common stock was $68 on August 1, 2021, and $74 on September 15, 2021. What is the amount of the debit to retained earnings
How do currency values rise and fall : "How do currency values rise and fall? Why would a country want to manipulate the value of its own currency?"
What is the starting pool balance for tranche a investors : A CMO is being issued with 2 tranches:- Tranche A has $20 million in principal and a 6.2% coupon.
Discuss depression in adolescents : Discuss depression in adolescents. How would you deal with this, if you had an adolescent dealing with depression?
Process for developing international corporate strategy : Identify the steps in the rational planning process for developing an international corporate strategy. Use a company that you are most familiar with and apply
Determine whether any impairment loss : Determine whether any impairment loss needs to be recognised in relation to the machinery and, if so, provide the appropriate journal entry at 30 June
What are the objectives for audit of noncurrent securities : Assuming that the system of internal control over securities is satisfactory, what are the objectives (specific assertations) for audit of noncurrent securities

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd