Question

Oh, and could you please show your work in as much detail as possible. I already...

Oh, and could you please show your work in as much detail as possible. I already kinda know the answer, I just want to see how you get it. Thank you so much!!!

Edit: Thank you so much for trying to help me but I figured it out but I would appreciate your help in the following question. Thank You!

One hundred identical mortgages are pooled together into a pass-through security. Each mortgage has a $100,000 principal, a fixed interest rate of 9% p.a. (paid monthly), and is fully amortized over a term of 30 years. Assume the bank charges servicing fees of 40 basis points and GNMA charges 10 bp to insure the timing of the payments. If investors expect no prepayment on these loans over the 30 years life of the pass-through, what should they pay for this package of mortgage backed securities (MBS), if they demand a return of 8%?

EDIT: I am sorry but this is the entirety of the question; I realize that a lot of people are asking for more information and I really don't have any. Could you please a little more specific in your comment as to what information you are looking for? Thank you for trying to help me out.

Homework Answers

Answer #2

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
One hundred identical mortgages are pooled together into a pass-through security. Each mortgage has a $100,000...
One hundred identical mortgages are pooled together into a pass-through security. Each mortgage has a $100,000 principal, a fixed interest rate of 9% p.a. (paid monthly), and is fully amortized over a term of 30 years. Assume the bank charges servicing fees of 40 basis points and GNMA charges 10 bp to insure the timing of the payments. If investors expect no prepayment on these loans over the 30 years life of the pass-through, what should they pay for this...
Could you please show me the steps on how you did this? I claim that more...
Could you please show me the steps on how you did this? I claim that more than 70% of my students pass my class. You do not believe me, so you do a records request to the college and find out that 85 out of 125 of my students passed my class last semester. Test at the 0.01 level of significance that my proportion of passing students is not really 70%. Thank you!
Please Answer all of them, I don't have much time, Thank you 68) Large firms tend...
Please Answer all of them, I don't have much time, Thank you 68) Large firms tend to be A) net users of trade credit. B) net suppliers of trade credit. C) firms with high levels of profitability. D) firms with low levels of inventory turnover and accounts receivable turnover. 69) From the banker's point of view, short-term bank credit is an excellent way of financing A) fixed assets. B) permanent working capital needs. C) repayment of long-term debt. D) seasonal...
When answering this could you please write out your steps so i can better understand it,...
When answering this could you please write out your steps so i can better understand it, Thank you!!! I apologize for the long question, it is all related and i don't know if posting them separately would confuse people. Suppose system A having a (constant) temperature of 53°C loses 19 mega-joules through heat loss to system B having a (constant) temperature of 15°C. What is the entropy loss of system A? a. -1.34 x 105 J/K b. -8.16 x 104...
****FOR THIS HOMEWORK ASSIGNMENT, YOU MUST SHOW ALL WORK (CALCUATIONS) AND DRAW TIME LINES. 1) Jane...
****FOR THIS HOMEWORK ASSIGNMENT, YOU MUST SHOW ALL WORK (CALCUATIONS) AND DRAW TIME LINES. 1) Jane is 25 years old and was able to save $25,000.    After doing some research, she identifies a stock called HPG Industries that has a dividend yield of 7% that has been consistent for the past 10 years. Based on this information, she decides to invest in this stock. Considering that HPG Industries pays the dividend consistently, how many years will it take for Jane...
SCENARIO : OPIOID WITHDRAWL OUTGOING NURSE : So we have an Evet Ogam. She is a...
SCENARIO : OPIOID WITHDRAWL OUTGOING NURSE : So we have an Evet Ogam. She is a 34-year-old female brought in by ambulance, last night at 1800 for a heroin overdose. She was given 2 doses of naloxone, 2mg each dose. She vomited twice following the naloxone. Following stabilization in the ER, she has been brought up to our floor for monitoring. Pt is allergic to aspirin and has a history of back surgery in 2012, Pt has been admitted twice...
In 100 words state if you agree/disagree with the summary made about the adjustments needed for...
In 100 words state if you agree/disagree with the summary made about the adjustments needed for the plan of action. NOTE: Scenario Part 2 is also provided. Work place unrest Part two provides additional information based on talking with your people. Jill: You met Monday afternoon and had a positive and productive discussion. She reiterated what HR had said to me concerning email and talking to Jill. Jill felt she was not challenged job wise and that her and Jack...
In narrative essay format, I want you to address a business/organization case study using multiple concepts...
In narrative essay format, I want you to address a business/organization case study using multiple concepts from class. The case question and case text begin on page 5 of this document. You need to demonstrate their best understanding of management and organizational behavior theory, and the application of those ideas to improve the understanding of various issues. You need to clearly identify at least 3 distinct, substantive issues. For each issue you need to 1), identify evidence from the case...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT