Question: PLEASE ANSWER BOTH CORRECTLY THANK YOU question 1 Consider a sequential pay CMO that is backed by 6 0 mortgages with average balance of $
PLEASE ANSWER BOTH CORRECTLY THANK YOU
question
Consider a sequential pay CMO that is backed by mortgages with average balance of $ each. The mortgages have monthly payments with WAM years and WAC There is a servicing fee of and prepayment is according to PSA. There are three tranches in this CMO: tranch A issued for $ tranche B issued for $ and a Zbond issued for $ How much cash flow do investors in tranche A receive in the first month?
question
Consider the same CMO as in the previous question and suppose that in month the beginning balance on tranche A is $ the beginning balance on tranche B is $ and the beginning balance on Z is $ How much cash flow do investors in tranche A receive in month
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