Question: please answer: . . A newly issued mortgage pass-through security (MPT) consists of the following six loans: a $400,000 loan for 15 years at 6%

please answer:

please answer: . . A newly issued mortgage pass-through security (MPT) consists

. . A newly issued mortgage pass-through security (MPT) consists of the following six loans: a $400,000 loan for 15 years at 6% APR a $200,000 loan for 10 years at 8% APR a $100,000 loan for 5 years at 10% APR a $500,000 loan for 10 years at 4% APR a $600,000 loan for 20 years at 8% APR a $300,000 loan for 25 years at 5% APR This pool of mortgages is managed by a trustee who extracts a service fee of.3% of the cash flows. (a) If an investor decides to invest in this MPT, what precisely is the investor purchasing? (b) How many years before the MPT matures? (c) What is the coupon rate for this MPT

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