A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $16 million of principal with a coupon rate of 3.50%. - Tranche B investors own $14 million of principal with a coupon rate of 3.70%. - Tranche Z investors own $14 million of principal with a coupon rate of 4.50%. The residual carries $1 million and receives all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments. What is the mortgage pool's starting balance at origination? Round your answers to cents (e.g. if your answer is $56000.0444, write 56000.04). A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $16 million of principal with a coupon rate of 3.50%. - Tranche B investors own $14 million of principal with a coupon rate of 3.70%. - Tranche Z investors own $14 million of principal with a coupon rate of 4.50%. The residual carries $1 million and receives all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments. What is the mortgage pool's starting balance at origination? Round your answers to cents (e.g. if your answer is $56000.0444, write 56000.04). A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $16 million of principal with a coupon rate of 3.50%. - Tranche B investors own $14 million of principal with a coupon rate of 3.70%. - Tranche Z investors own $14 million of principal with a coupon rate of 4.50%. The residual carries $1 million and receives all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments. What is the mortgage pool's starting balance at origination? Round your answers to cents (e.g. if your answer is $56000.0444, write 56000.04). A CMO has been issued with 3 tranches and a residual. At origination: - Tranche A investors own $16 million of principal with a coupon rate of 3.50%. - Tranche B investors own $14 million of principal with a coupon rate of 3.70%. - Tranche Z investors own $14 million of principal with a coupon rate of 4.50%. The residual carries $1 million and receives all residual payments. Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50% with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments. What is the mortgage pool's starting balance at origination? Round your answers to cents (e.g. if your answer is $56000.0444, write 56000.04).
Expert Answer:
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date:
Students also viewed these accounting questions
-
What is a CMO? Explain why a CMO has been called as much of a marketing innovation as a financial innovation.
-
A CMO is being issued with 2 tranches: - Tranche A has $18 million in principal and a 2% coupon. - Tranche B has $7 million in principal and a 2.8% coupon. The mortgages backing the security issued...
-
A $10 million principal amount, 3-year term loan carries an interest rate of 10 percent. All interest payments (which would normally be due at the end of each year) are deferred until the end of...
-
Water is pumped out of a holding tank at a rate of 5 5e 0.12t liters/minute, where t is in minutes since the pump is started. If the holding tank contains 1000 liters of water when the pump is...
-
Determine the equilibrium concentrations for this chemical reaction with the given Keq. HCNg) + HNCe 4.50 2.00 M
-
Consider a blunt-nosed aerodynamic model mounted inside the driven section of a shock tube. The axis of the model is aligned parallel to the axis of the shock tube, and the nose of the model faces...
-
A long, thin metal plate is hung vertically after a heat treating process. The plate, of width \(W=0.2 \mathrm{~m}\), vertical dimension of \(3 \mathrm{~m}\), and an initial temperature of...
-
Five Flags over New York paid $90,000 for a concession stand. Five Flags started out depreciating the building straight-line over 10 years with zero residual value. After using the concession stand...
-
What are the thermodynamic and kinetic considerations in ultrasonic-assisted extraction, and how does this method enhance the efficiency and speed of extraction compared to conventional techniques ?
-
(Note: Although this question is based on the Skates 'n' Surf business the accounts, amounts and transactions involved may differ between questions. Please read each question separately.) Skate n...
-
An insurance agent recieve a salary of $550 a commission 2% on sales over $8500.if his total income in a particular month was $1250.what was his monthly sales?
-
Name at least 10 things you should not do if you want your presentation to be informative, persuasive, and well-received.
-
ROI analyses are often done with a consideration of a technology lifetime of 35 years. Do you think that technology has an impact on business after that time period? Why or why not?
-
Under what circumstances can DD&A be computed on the basis of a single mineral despite the fact that oil and gas are jointly produced? a. If the relative proportion of oil and gas extracted in the...
-
What is the primary target of systems design and what phases are included in systems design? If the systems analysis was poorly done or incomplete, can a good systems design effort overcome that?
-
Internet technology has grown at an explosive rate over the past decade. In the view of many, network computing architectures represents a major move in a radically different direction away from...
-
Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct...
-
7 A 29-year-old, previously healthy man suddenly collapses at a party where legal and illicit drugs are being used. Enroute to the hospital, he requires resuscitation with defibrillation to establish...
-
What is meant by a participation loan? What does the lender participate in? Why would a lender want to make a participation loan? Why would an investor want to obtain a participation loan?
-
John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $15,000 at the end of 10 years. He believes that he should earn an investment yield of 8 percent...
-
You are a new loan officer with Alpha Mortgage, and the manager of the loan department has just presented a problem to you. He is unable to complete the APR calculation on an adjustable rate mortgage...
-
How can you identify a real option in a decision tree?
-
In 2022, Costco Wholesale Corporation had a market capitalization of \($238\) billion, debt of \($6.5\) billion, cash of \($12\) billion, and EBIT of about \($8\) billion. If Costco were to increase...
-
In what circumstances does the real option add value?
Study smarter with the SolutionInn App