1. Draw a Chart of relationship between SMM and CPR, starting from SMM = 0.1% to...

 

Transcribed Image Text:

1. Draw a Chart of relationship between SMM and CPR, starting from SMM = 0.1% to 10%, with step size of 0.1%. What conclusions can you make form the chart? (0.5 points) 2. Convert SMM to CPR and PSA Age 5 6 7 Month 1 2 3 4 5 Total equivalents (0.5 points) SMM CPR PSA 0.6 1.0 2.0 3. Derive formula for SMM in terms of CPR, and CPR in terms of PSA. (0.5 points) 4. Calculate Weighted Average Life for principal payment schedule below (0.5 points) Principal Payment 50 100 200 400 800 1550 1. Draw a Chart of relationship between SMM and CPR, starting from SMM = 0.1% to 10%, with step size of 0.1%. What conclusions can you make form the chart? (0.5 points) 2. Convert SMM to CPR and PSA Age 5 6 7 Month 1 2 3 4 5 Total equivalents (0.5 points) SMM CPR PSA 0.6 1.0 2.0 3. Derive formula for SMM in terms of CPR, and CPR in terms of PSA. (0.5 points) 4. Calculate Weighted Average Life for principal payment schedule below (0.5 points) Principal Payment 50 100 200 400 800 1550

Answer rating: 100% (QA)

1 To draw the chart of the relationship between SMM Single Monthly Mortality and CPR Constant Prepay... View the full answer