Question
Construct the amortization schedule and calculate the average life for below pass-through security, assuming a prepayment rate of 150 PSA: Original balance: $100,000,000 Pass-through rate:
Construct the amortization schedule and calculate the average life for below pass-through security, assuming a prepayment rate of 150 PSA:
Original balance: $100,000,000
Pass-through rate: 9.0%
WAC: 9.5%
WAM: 360 months (note: NOT 357 months)
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Step: 1
Assume that the passthrough security has a face value of 1000 per bond and that there ...Get Instant Access to Expert-Tailored Solutions
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College Mathematics for Business Economics Life Sciences and Social Sciences
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
12th edition
321614003, 978-0321614001
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