Question: please answer question 4 highlighted cells with excel formulas! B D E F G H 1 MPTS Excel Assignment 2 The Blue Algae Mortgage Company

please answer question 4 highlighted cells with excel formulas!
please answer question 4 highlighted cells with excel formulas! B D E
F G H 1 MPTS Excel Assignment 2 The Blue Algae Mortgage

B D E F G H 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 11 395 396 Question 4: What price should Blue Algae obtain if the pool is carved into MPTS and the investors require a 397 9% annual return after a monthy service fee of 0.1% is deducted and the monthly prepayment rate is 0.1%? 398 399 Payments from Borrowers Prepaid Principal Principal Service Fee Cash Flow to Investors Interest Pool Balance Required Return Price 100 401 402 103 404 105 406 107 Month 0 1 2 3 4 S 6 B D E F G H 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 11 395 396 Question 4: What price should Blue Algae obtain if the pool is carved into MPTS and the investors require a 397 9% annual return after a monthy service fee of 0.1% is deducted and the monthly prepayment rate is 0.1%? 398 399 Payments from Borrowers Prepaid Principal Principal Service Fee Cash Flow to Investors Interest Pool Balance Required Return Price 100 401 402 103 404 105 406 107 Month 0 1 2 3 4 S 6

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