Determining the total mortgage-backed security fee

Assignment Help Finance Basics
Reference no: EM132608851

Do you expect any changes in mortgage-backed security pricing if the pass-through security was not fully amortised? What is the present value of a twelve million $ pool of ten-year mortgages with an 8 per cent monthly mortgage coupon per annum if market rates are seven per cent? Assume that the pass-through security is fully amortised. The total mortgage-backed security fee is assumed to be 500 basis points.

Reference no: EM132608851

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What is the current value of a share of common stock

Assume the investor has a required rate of return of 15 percent and expects to sell the security in 5 years for $72.

  What are the three ways of purchasing health insurance

Why is it important to work with your parent's doctor to provide the information the insurer needs for long-term-care benefits?

  1-nbspnbspnbspnbspnbsp describe two types of risks that are

1-nbspnbspnbspnbspnbsp describe two types of risks that are seen in financial markets. nbsphow can managers minimize

  What is the best estimate of tapley simple interest rate

Assuming that interest rates in the general economy are expected to remain at their current level, what is the best estimate of Tapley's simple interest

  Capital co has a capital structure based on current market

capital co. has a capital structure based on current market values that consists of 30 percent debt 3 percent preferred

  Cloud-based computing

Cloud-based computing allows businesses to store and access large amounts of data over the Internet rather than on in-house computer hard drives.

  How much would you be willing to pay for a ticket to draw

If you are offered $20 to draw a red ball from a bag that contains six green balls, two blue balls, and two red balls, how much would you be willing to pay for a ticket to draw?

  Formal process of investments or expenditure

Capital Budgeting is the formal process of investments or expenditure that is huge in amount. It involves the company's major

  Constitute an industry with the following market shares

Imagine that 7 companies, A, B, C, D, E, F,G, constitute an industry with the following market shares: (1) 10% (A), (ii) 10% (B), (iii) 15%.

  Should society worry that executives would unduly enrich

Should society worry that executives would unduly enrich themselves, or can society rely on the entrepreneurs' incentives to write corporate charters that prevent this?

  Function of financial intermediaries

Financial Intermediaries I. Function of Financial Intermediaries     1. How are intermediaries helpful to the banking customer/ investors     2. The cost of doing business without intermediary assistance

  Yield-to-maturity approach to bond pricing

Assume that the yield-to-maturity approach to bond pricing is appropriate. What is the intrinsic value of the bond right now?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd