Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Consider the following fixed-rate level-payment mortgage pass-through security:

Total principal outstanding = $10,000,000

            Weighted average mortgage (Note) rate = 8.25%

            Weighted average remaining maturity = 30 years (360 months)

            Pass-through rate=7.5%

1,Assume that you are an investor in the pass-through security. Calculate the interest and scheduled principal repayment received by you for the sixth month.

2. Assume 125 PSA pre-payment. What is the amount of prepayment in the sixth m

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