Question: please show work in excel along with each equations/formula on how you got the answers Question 2 Create a schedule of predicted cash flow for
please show work in excel along with each equations/formula on how you got the answers
Question 2 Create a schedule of predicted cash flow for the following pass-through (MPT). - Mortgage pool: $3 million - All mortgages are FRM at 8% per year, 5-year maturity, yearly payment - Pass-through: $3 million, yearly payment - Fee payment: 0.5% of outstanding balance a) What is the value of this pass-through at 7% discount rate, assuming that there is no prepayment? Calculate the answer by filling in the columns below
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