Compute what is the present value of the po mbs

Assignment Help Managerial Accounting

Reference no: EM132719828

Problem 1: (Principal-Only MBS and Interest-Only MBS) Suppose we construct principal-only (PO) and interest-only (IO) 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?

Reference no: EM132719828

Questions Cloud

How does cultural values and norms influence the issue : We are at the halfway point if you can believe it! This week you are going to compose the second half of your paper. This part of the paper explores.

What is this manager MSP : The minimum labor cost for staying open one extra hour is 125.00 Rounded up to the nearest dollar, what is this manager's MSP

Prepare a cash receipts schedule for each month : Cash dividends for the store of $710 thousand are declared. Prepare a cash receipts schedule for each month of the second quarter ending June 30.

Compute the common fixed expenses for Meyer Corporation : Meyer Corporation reported a total net operating income of $52,000. Compute the common fixed expenses for Meyer Corporation

Compute what is the present value of the po mbs : Principal-Only MBS and Interest-Only MBS, 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?

What is the share price at the end of the first year : The last dividend was $0.45, and the required rate of return on the shares is 11%. What is the share price (estimated) at the end of the first year

What is the total amount of the prepayments : What is the total amount of the prepayments if the rate of prepayments increases to 200 PSA? What is the total amount of the prepayments?

Professor working relationship and behavior : Give your insight into how stereotypes can be useful in such situation? How can they be harmful

What is the gain or loss to be recognized in profit or loss : What is the gain or loss to be recognized in profit or loss for the year ended 31 December 2016 regarding the disposal of the property

User Account

All Pages