Question: Please help me with Question 6&7 1.(Level-Payment Mortgages) Compute the monthly payment on a 30-year level payment mortgage assuming an annual mortgage rate of 5%

Please help me with Question 6&7 1.(Level-Payment Mortgages) Compute the monthly paymentPlease help me with Question 6&7

1.(Level-Payment Mortgages) Compute the monthly payment on a 30-year level payment mortgage assuming an annual mortgage rate of 5% and an initial mortgage principal of $400,000. (2147.29) 2.(Mortgage Pass-Throughs) Consider a $400 million pass-through MBS that has just been created (so the seasoning' of the pass-through is equal to 0). The underlying pool of mortgages each has a maturity of 20 years and an annual mortgage coupon rate of 6%. The pass-through rate of the mortgage pool is 5%. Assuming a prepayment multiplier of 100 PSA what is the total amount of interest paid to the pass-through investors? (171.18) 3.(Mortgage-Pass Throughs) Referring to the same mortgage pass-through of the previous question, what is the total amount of the prepayments? (181.09) 4.(Mortgage-Pass Throughs) Referring to the same mortgage pass-through of the previous question, what is the total amount of the prepayments if the rate of prepayments increases to 200 PSA? (268.15) 5.(Principal-Only MBS and Interest-Only MBS) Suppose we construct principal-only (PO) and interest-only (10) mortgage-backed securities (MBS) using the mortgage pass-through of the previous questions. Assume a prepayment multiplier of 100 PSA. What is the present value of the PO MBS if we use an annual risk-free rate of 4.5% to value the cash-flows?(280.10) 6. (Principal-Only MBS and Interest-Only MBS) Referring to the previous question, what is the value of the 10 MBS? 7. Principal-Only MBS and Interest-Only MBS) Referring to the previous question, what is the average life of the IO MBS? Submission Guideline: Give your answer in millions rounded to two decimal places. For example, if you compute the answer to be $123,456,789,12, submit 123.46. ALL I NEED IS THE ANSWER OF QUESTION 687 1.(Level-Payment Mortgages) Compute the monthly payment on a 30-year level payment mortgage assuming an annual mortgage rate of 5% and an initial mortgage principal of $400,000. (2147.29) 2.(Mortgage Pass-Throughs) Consider a $400 million pass-through MBS that has just been created (so the seasoning' of the pass-through is equal to 0). The underlying pool of mortgages each has a maturity of 20 years and an annual mortgage coupon rate of 6%. The pass-through rate of the mortgage pool is 5%. Assuming a prepayment multiplier of 100 PSA what is the total amount of interest paid to the pass-through investors? (171.18) 3.(Mortgage-Pass Throughs) Referring to the same mortgage pass-through of the previous question, what is the total amount of the prepayments? (181.09) 4.(Mortgage-Pass Throughs) Referring to the same mortgage pass-through of the previous question, what is the total amount of the prepayments if the rate of prepayments increases to 200 PSA? (268.15) 5.(Principal-Only MBS and Interest-Only MBS) Suppose we construct principal-only (PO) and interest-only (10) mortgage-backed securities (MBS) using the mortgage pass-through of the previous questions. Assume a prepayment multiplier of 100 PSA. What is the present value of the PO MBS if we use an annual risk-free rate of 4.5% to value the cash-flows?(280.10) 6. (Principal-Only MBS and Interest-Only MBS) Referring to the previous question, what is the value of the 10 MBS? 7. Principal-Only MBS and Interest-Only MBS) Referring to the previous question, what is the average life of the IO MBS? Submission Guideline: Give your answer in millions rounded to two decimal places. For example, if you compute the answer to be $123,456,789,12, submit 123.46. ALL I NEED IS THE ANSWER OF QUESTION 687

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