Determine the expected return you would require if purchasing the D-bond. Using that return expectation, calculate the face value you would expect to acquire with your $5.8 million purchase. That is, at what price (relative to par) would you need to acquire the D-bond to prefer the D-bond over direct mortgage investment?

The expected return is calculated with the formula; + n YTM = Face Value Current Price 1 N= the maturity period+ Face value=par value/the bonds maturity valuation+ Current price= Present bond's price + Calculating; +Initial Pass- Average ($ in Rating Rating Through Maturity Life Note Class millions) (Moody's) (Realpoint) Rate Subordination Date (Years) Type A-1 20 Aaa AAA 2.36700% 22.25 4/15/24 2.49 Fixed A-2 220.791 Aaa AAA 3.68600% 22.25 4/15/24 4.93 Fixed B 18.575 Aa2 AA 4.63049% 16.25 4/15/24 4.98 Fixed C 20.9 Aa2 A 4.66349% 9.5 4/15/24 4.98 Fixed D 29.434 Baa3 BBB- 4.66349% 0 4/15/24 4.98 Fixed X(IO) 259.366 Aaa AAA 1.01156% 4/15/24 4.41 Fixed