Question: Please answer this in Excel and include formulas! Thank you! 1. Consider the following of Freddie Mac REMIC-CMO. The collateral for the REMIC is $100,000,000.

Please answer this in Excel and include formulas! Thank you!

1. Consider the following of Freddie Mac REMIC-CMO. The collateral for the REMIC is $100,000,000. The underlying mortgages have a contract rate of 7.75% and maturity of 360 months. The CMO's will pay monthly and the tranche allocations and the tranche coupons are as follows: Tranche Prin. Share (%) Coupon (%) 6.50 6.75 7.00 7.00 IO 7.375 Calculate cash flows and balances for each tranche the first three months. You may assume that the monthly SMM is constant at .5% and that the servicing fee is 37.5 basis points. 1. Consider the following of Freddie Mac REMIC-CMO. The collateral for the REMIC is $100,000,000. The underlying mortgages have a contract rate of 7.75% and maturity of 360 months. The CMO's will pay monthly and the tranche allocations and the tranche coupons are as follows: Tranche Prin. Share (%) Coupon (%) 6.50 6.75 7.00 7.00 IO 7.375 Calculate cash flows and balances for each tranche the first three months. You may assume that the monthly SMM is constant at .5% and that the servicing fee is 37.5 basis points

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

roblem 11-36 (LO. 2, 11) a. Heather wants to invest $40,000 in a relatively safe venture and has discovered two alternatives that would produce the following reportable ordinary income and loss over...

Dear Dr Fids, Can you please help these questions? It is about MBS cash flow. R Generating MBS cash flows can be messy so we are going to write some functions in R that allows us to generate the cash...

Hi, I have a few questions to ask: 1.Consider the cash flow pattern of the CDS in Exhibit 2. One way to think about a credit default swap is that its cash flows can be replicated with long and short...

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

1004 Project Questions Questions and Calculations 1. What is the 30 year fixed "purchase money" market Interest rate at your bank? 2. What is the "APR" for #1? (you do not have to calculate this, it...

Your end-of-semester assignment is as follows: (a) (i) read the two Economist articles entitled ?Debt is Good for You? (dated 01/25/2001) and ?Debtors? Prison? (dated 02/09/2009), which discuss the...

Managerial Decision Making Six Decision Stages in Chapter 5 I. Identify and Diagnose the Problem Consider the following questions when identifying and diagnosing the problem: Is there a difference...

Question for the case study below: 1) Is effective risk management possible without constructive dialogue? Constructive Dialogue and ERM Lessons from the Financial Crisis (THOMAS H. STANTON) The...

Case analysis: The Great Recession, 2007-2010: Causes and Consequences This week, you will have an opportunity to review the Great Recession of 2007-2010 along with the causes and consequences of...

Hello my friend please assist me with my discussion Interest Rates Negotiation is a soft skill that might just be one of the most important skills you will ever learn. For this Discussion you will...

Assignment 4: Receivables questionnaire problems 1 and 2. Inventory questionnaire problems 1 and 2 Receivable questionnaire starts on page 97 to 100 and then answer the 2 problems Inventory...

Write a paper about business Intelligence technology and processes are constantly changing. It's important to stay current on new software, techniques, and innovative ways of converting data into...

Auditors often use client budgets for revenue and expenses as part of their substantive testing. Explain how and why this is done.

Question 5 2 Which of the following is an accurate statement regarding cash? The amount of cash flowing into and out of the cash account is often larger than that for any other account in the...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...