Question: please answer question 3 highlighted cells with excel formulas! B D 1 MPTS Excel Assignment 2 The Blue Algae Mortgage Company has originated a pool

B D 1 MPTS Excel Assignment 2 The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an 3 average balance of $100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 4 12% and all loans require monthly payments. 5 6 7 Initial Pool Balance 8 Annual Interest Rate 9 Maturity (years) 10 Payments per year 11 272 Required Return $ Question 3: What price should Blue Algae obtain if the pool is carved into MPTS and the investors require a 99% annual return after a monthy service fee of 0.1% is deducted (with no prepayment)? 70 71 Payments from Prepaid Service Cash Flow to Month Borrowers Interest Principal Principal Fee Pool Balance Investors 273 0 14 1 275 2 376 3 1 278 2.39 6 250 7 281 30 Price 21 0 B D 1 MPTS Excel Assignment 2 The Blue Algae Mortgage Company has originated a pool containing 75 ten-year fixed rate mortgages with an 3 average balance of $100,000 each with 1% origination fee. The annual interest rate on all loans in the pool is 4 12% and all loans require monthly payments. 5 6 7 Initial Pool Balance 8 Annual Interest Rate 9 Maturity (years) 10 Payments per year 11 272 Required Return $ Question 3: What price should Blue Algae obtain if the pool is carved into MPTS and the investors require a 99% annual return after a monthy service fee of 0.1% is deducted (with no prepayment)? 70 71 Payments from Prepaid Service Cash Flow to Month Borrowers Interest Principal Principal Fee Pool Balance Investors 273 0 14 1 275 2 376 3 1 278 2.39 6 250 7 281 30 Price 21 0
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
