What is the sum of the undiscounted cash flows to investor

Assignment Help Financial Management

Reference no: EM131043517

In a pool with 200 mortgages (10 year FRM, annual payments), average starting balance of $250,000 each, 6% mortgage rate, 0.5% servicing fee. If the CPR for the is pool is 5%, what is the sum of the undiscounted cash flows to the investor over the life of the security?

Reference no: EM131043517

Questions Cloud

How is the money multiplier related to the reserves ratio : Assume that the consolidated balance sheet for the commercial banking system can be simplified as follows: D+NW=R+L where D=deposits, NW= net worth, R=reserves and L=loans. Assume that the banks maintain a fixed reserves ratio (R/D) of 10% and a capi..

Fully depreciated on a straight-line basis : Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $287,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years..

Which includes vocabulary from the weeks assigned readings : Each week you'll need to post a news story that is somehow related to one of the topics covered in during the week. Please post a link, and then give a quick summary which includes vocabulary from the week’s assigned readings.

Compute the EAC for both machines : You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a three-year life, and has pretax operating costs of $54,000 per year. The Techron II costs $375,000, has a five-year life, and has pretax operating co..

What is the sum of the undiscounted cash flows to investor : In a pool with 200 mortgages (10 year FRM, annual payments), average starting balance of $250,000 each, 6% mortgage rate, 0.5% servicing fee. If the CPR for the is pool is 5%, what is the sum of the undiscounted cash flows to the investor over the li..

How much cash will be passed through to investors in month : Given an MPT with a starting pool balance of $100,000, 30 year FRMs, monthly payments, servicing fee 0.5%, mortgage rate 9.5%, and prepayment PSA 100, Given that the starting balance in month 4 is $99,751, what is dollar amount of prepayment in month..

About the the future value : What is the future value of $1,750 in 17 years assuming an interest rate of 6.5 percent compounded semiannually?

Forward rate be to make it profitable for trading : The spot exchange rate for the Canadian dollar on December 31, 2014 was 1.1583 C$/US$, while the 3 month Euro-rates on December 31st were quoted at 1.185% per annum and 0.31% per annum for the Canadian and U.S. dollars respectively. What should the 3..

What were critical economic issues of the tax cut debate : Was there a production gap when Kennedy assumed the presidency in January 1961? How large was it? Assume a GNP growth rate of 3.3% starting in 1955 and project forward using Excel document. Attach the file directly to the discussion board. What were ..

User Account

All Pages