Question: A CMO has been issued with 3 tranches and a residual. At origination: Tranche A Investors own 545 million of principal with a coupon rate
A CMO has been issued with 3 tranches and a residual. At origination: Tranche A Investors own 545 million of principal with a coupon rate of 3 50%, Tranche investors own 543 million of principal with a coupon rate of 3.70%. Tranche investors own 511 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 leg. 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 545 million of principal with a coupon rate of 3 50%, Tranche investors own 543 million of principal with a coupon rate of 3.70%. Tranche investors own 511 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 leg. If your answer is $56000.0444, write 56000.04)
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