What is the impact on GNMA pricing if a pass-through is not fully amortized? What is the

Question:

What is the impact on GNMA pricing if a pass-through is not fully amortized? What is the present value of a $ 10 million pool of 15-year mortgages with an 8.5 percent per year monthly mortgage if market rates are 5 percent? The GNMA guarantee fee is 6 basis points and the FI servicing fee is 44 basis points.
a. Assume that the GNMA pass-through is fully amortized.
b. Assume that the GNMA pass-through is only half amortized. There is a lump sum payment at the of the GNMA pass-through that equals 50 percent of the mortgage pool’s face value.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...