write my assignment 2051

A CMO is being issued with 2 tranches: • The A tranche will consist of $25M of principal and have a coupon of 7.5%. • The B tranche will have a coupon of 8% and a principal of $15M. The mortgages backing the security issued are FRM at a mortgage rate of 9% with 10 year maturities and annual payments. The issuer will receive cash flows only after all classes of investors have been paid according to schedule. There is no guarantee/servicer fee. Prepayments are assumed to be constant at 5% CPR. What is cash flow paid to tranche A in year 1? Round to cents. A. $5,124,501.47B. $8,763,612.20 C. $7,576,286.98 D. $6,507,803.60 E. $10,982,639.21

A CMO is being issued with 2 tranches: • The A tranche will consist of $25M of principal and have a coupon of 7.5%. • The B tranche will have a coupon of 8% and a principal of $15M. The mortgages backing the security issued are FRM at a mortgage rate of 9% with 10 year maturities and annual payments. The issuer will receive cash flows only after all classes of investors have been paid according to schedule. There is no guarantee/servicer fee. Prepayments are assumed to be constant at 5% CPR. What is cash flow paid to tranche A in year 1? Round to cents.

A. $5,124,501.47

B. $8,763,612.20

C. $7,576,286.98

D. $6,507,803.60

E. $10,982,639.21

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Comments are closed.

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp