Question: Question 2 4 points Sive Answe ACMO has been issued with 3 tranches and a residual. At origination: Tranche A investors own 557 million of
Question 2 4 points Sive Answe ACMO has been issued with 3 tranches and a residual. At origination: Tranche A investors own 557 million of principal with a coupon rate of 3.50%. Tranche investors own 523 million of principal with a coupon rate of 3.70% Tranche z investors own $2 million of principa with a coupon rate of 4.50%. The residual carries 51 million and receives all residual payments Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50w with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments. What is the balance on the tranche at the end of the first month same as the balance at beginning of the second month? Round your answers to cents (eg. If your answer is 556000.0444, write 56000.04) Question 2 4 points Sive Answe ACMO has been issued with 3 tranches and a residual. At origination: Tranche A investors own 557 million of principal with a coupon rate of 3.50%. Tranche investors own 523 million of principal with a coupon rate of 3.70% Tranche z investors own $2 million of principa with a coupon rate of 4.50%. The residual carries 51 million and receives all residual payments Mortgages backing the security issued are fully amortizing fixed rate with mortgage rate of 4.50w with 30 year maturities and monthly payments. Assume no servicing/guarantee fee and no prepayments. What is the balance on the tranche at the end of the first month same as the balance at beginning of the second month? Round your answers to cents (eg. If your answer is 556000.0444, write 56000.04)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
