You purchase an MBS 9, 30 year with a face value of $100,000 a) What is your

Fantastic news! We've Found the answer you've been seeking!

Question:

You purchase an MBS 9, 30 year with a face value of $100,000 a) What is your monthly payment? b) What is the interest and principal earned over 5 years c) What will the MBS be priced at the following yield/yrs survived scenarios

d) What would the price of a US 9, 30 years bond with a face value of $100,000 sell for at the above yield scenarios.

Yield	Yrs Survived	Price
6 percent	1 year	?
8 percent	5 years	?
9 percent	8 years	?

Posted Date: May 13, 2024 06:33 AM

See More Questions

Evaluate each expression using your calculator. Round your answers to the nearest thousandth. a. b. c. d. -30+30-45) 25) 30 V30 45(3) 2(5) 2 8
Using Table E.6, determine the lower-tail critical value for the Wilcoxon rank sum test statistic, T 1 , in each of the following one-tail tests: a. a = 0.05, n = 6, n = 8 b. a = 0.025, n = 6, n %3D...
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
The city of Toledo has received a proposal to build a new multipurpose outdoor sports stadium. The expected life of the stadium is 20 years. It will be financed by a 20- year bond paying 8 percent...
At December 31, 2011, the investments in securities available-for-sale of Beale Developments were reported at $78 million: During 2012, Beale sold its investment in Schwab Pharmaceuticals, which had...
Suppose you are made a proposal to acquire an investment that will provide cash flows of $2,250 per year for 15 years. The cost of this investment is $15,750. If you have an alternative investment...
What do the letters ESA stand for? Does the ESA cover young workers? 3. Are young workers who are part-time employees covered by the ESA? 4. Does the ESA cover young workers who are working on...
a) Determine the wind loads on the building. b) Refer to the National Construction Code (NCC)) for requirements for weatherproofing the faade. describe the test methodology including the test...
1. Draw the following figure of a cylinder on a canvas
1. Given the following project, draw the project network diagram using the AoA (Activity on Arrow) notation. (5 points) A B C D E F 2. The table below shows the activities, immediate predecessors,...
Estimate the free cash flow of 2019 under the following assumptions. Assumptions: 1. Year 2019 sales projection: $31,556,000,000 2. All the other income statement accounts are assumed to hold a...
The picture mentions the the Cape Wind project in Nantucket Sound between Nantucket island, Martha's Vineyard, and Cape Cod. Although formally proposed in 2001, this project has been abandoned....

You purchase an MBS 9, 30 year with a face value of $100,000 a) What is your

Question:

Expert Answer:

a Monthly Payment To calculate the monthly payment we need to use the formula for Amortization Monthly Payment Face Value x Rate 12 1 1 RateNumber of ... View the full answer

Students also viewed these finance questions