a. Build an Excel spreadsheet that calculates the fraction of a 360-month pool that prepays each month
Question:
a. Build an Excel spreadsheet that calculates the fraction of a 360-month pool that prepays each month of the pool’s life for any PSA speed. Make sure that you are getting good calculations by checking several months for PSAs of 0, 100, and 400.
b. Calculate the scheduled amortization for the pool and the monthly interest payments.
c. Graph the total principal payments, total interest payments and their sum.
Step by Step Answer:
Related Book For
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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