Residential mortgages-pool balance at beginning of the month

Assignment Help Financial Management
Reference no: EM131304969

• Imagine you have a pool of 30 year residential mortgages (FRMs, fully amortizing), WAC=4%, monthly payments

• The pool balance at the beginning of the month is 285,634,760

• The mortgages, on average, have already made three years of payments (i.e. they are about to make their 37th payment)

• If this month (t=37), the following mortgages enters into default, what is the realized CDR for this pool?

• Mortgage 1: Beginning of the month balance 200,000; Mortgage 2: Beginning of the month balance 354,000

Round your answer to two decimal places (For example, if your answer is ten and a half percent, enter 10.50)

Reference no: EM131304969

Questions Cloud

Draw a network map that shows the topology of the mfn : Draw a network map that shows the topology of the MFN and how the main components are connected.
What is the future value of the same annuity due : Future Value of an Annuity Due If the future value of an ordinary, 7-year annuity is $7,900 and interest rates are 5 percent, what's the future value of the same annuity due?
What security concerns do you have for the wireless network : Mapleland is considering expanding the MFN to include wireless access for its residences. What additional investigation will you do to prepare for a citywide wireless network?
Explain the indirect financial benefit from a bariatric : Identify and explain the indirect financial benefit from a bariatric center of excellence to various hospital departments, which would result from this hospital based program. When considering the indirect financial benefit, review the financial i..
Residential mortgages-pool balance at beginning of the month : Imagine you have a pool of 30 year residential mortgages (FRMs, fully amortizing), WAC=4%, monthly payments. The pool balance at the beginning of the month is 285,634,760. The mortgages, on average, have already made three years of payments. If this ..
Provide an example of what leaders can do to be inclusive : Provide an example of what leaders can do to be inclusive of all dimensions of diversity including (but not limited to): job levels, psychographics, height/weight, etc.
Find an application that uses distributed computing : Do some research regarding TCP window scaling. Find out if the OS on your computer uses it by default and, if not, if there's a mechanism for configuring the OS to use it.
How much does development office need to ask for up front : Which will contribute $1 million per year, in perpetuity, to the biology department. Assuming an interest rate of 8 percent, how much does the Development Office need to ask for up front?
Which program would you take up : Which program would you take up? Why?What are the critical questions that you need to have answered? Provide at least five such questions. What kind of research you will do to answer these questions?What are the sources of information that you wil..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the price of the stock

Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.57 per share. This dividend is expected to grow at a rate of 2.9 percent per year forever. The appropriate discount rate for Pharsalus's stock is 13.9 percent. What is the price of the stock?

  Cash flows are expected to grow at an annual rate

You are evaluating the potential purchase of a small business currently generating $42,500 after-tax cash flow (Do=$42,500). On the basis of a review of similar-risk investment opportunities, you must earn an 18% rate of return on the proposed purcha..

  Excess capacity-what is walters target fixed assets

Walter Industries has $8 billion in sales and $2.8 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. What is Walter's target fixed assets/Sales ratio? What level of sales could Walter Industries have obt..

  Calculate the amount of profit

Explain how this leader in your firm can speculate on the belief that the euro will be $1.41 in 12 months.- Calculate the amount of profit that can be earned and the percentage return achieved.

  What is the preferred stock price if required rate of return

The growth rate for the firm's common stock is 7%. The firm's preferred stock is paying an annual dividend of $5. What is the preferred stock price if the required rate of return is 8%?

  Any changes to a firms projected future cash flows

Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as which one of the following?

  Determine the actual return for the fund

Determine the actual return for the fund over the 12 months ending October 2013. (This requires you to obtain prices and cash distributions from a source such as Yahoo Finance.) If an investor invested $10,000 at the end of October 2012, how much wou..

  Valuation of a declining growth stock

Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 3% pe..

  What is the stocks expected price

Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?

  What is the current market price of zapata stock

Zapata Corporation will pay dividends of $5.00, $6.00, and $7.00 in the next three years. Thereafter, the company expects its dividend growth rate to be a constant 10 percent. If the required rate of return is 15 percent, what is the current market p..

  What is the beta of your portfolio

You own $17,068 of Olympic Steel stock that has a beta of 2.80. You also own $17,068 of Rent-a-Center (beta = 2.08) and $16,064 of Lincoln Educational (beta = 0.66). What is the beta of your portfolio?

  Calculate the tax on the sale of each asset

Capital gains taxes Perkins Manufacturing is considering the sale of two nondepreciable assets, X and Y. Asset X was purchased for $2,000 and will be sold today for $2,250. Asset Y was purchased for $30,000 and will be sold today for $35,000. The fir..

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