A CMO has been issued with 3 tranches and a residual. At origination: Tranche A investors own $91 million of principal with a coupon rate of 3.50%. Tranche B investors own $11 million of principal...


A CMO has been issued with 3 tranches and a residual. At origination:<br>Tranche A investors own $91 million of principal with a coupon rate of 3.50%.<br>Tranche B investors own $11 million of principal with a coupon rate of 3.70%.<br>-Tranche Z investors own $9 million of principal with a coupon rate of 4.50%.<br>The residual carries $1 million and recelves all residual payments. Mortgages backing the security issued are fully amortizing fixed rate<br>with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments.<br>What is the mortgage pool's starting balance at origination? Round your answers to cents (e.g. if your answer is $56000.0444, write<br>56000.04).<br>

Extracted text: A CMO has been issued with 3 tranches and a residual. At origination: Tranche A investors own $91 million of principal with a coupon rate of 3.50%. Tranche B investors own $11 million of principal with a coupon rate of 3.70%. -Tranche Z investors own $9 million of principal with a coupon rate of 4.50%. The residual carries $1 million and recelves all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments. What is the mortgage pool's starting balance at origination? Round your answers to cents (e.g. if your answer is $56000.0444, write 56000.04).

Jun 02, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here