User Account

All Pages

What is the coupon rate for this MPT

Assignment Help Accounting Basics
Reference no: EM132730436

Question - A newly issued mortgage pass-through security (MPT) consists of the following six loans:

a $400,000 loan for 15 years at 6% APR

a $200,000 loan for 10 years at 8% APR

a $100,000 loan for 5 years at 10% APR

a $500,000 loan for 10 years at 4% APR

a $600,000 loan for 20 years at 8% APR

a $300,000 loan for 25 years at 5% APR

This pool of mortgages is managed by a trustee who extracts a service fee of .3% of the cash flows.

Required -

(a) If an investor decides to invest in this MPT, what precisely is the investor purchasing?

(b) How many years before the MPT matures?

(c) What is the coupon rate for this MPT?

Reference no: EM132730436

Questions Cloud

Will the growth of online education change academic system : In your opinion, will the growth of online education change our academic systems? How? Will it be for the better or for the worse?
What types of social inequalities existed before modern : What types of social inequalities existed before those modern revolutions? Did the economic and political revolutions that began at the end of the early modern
Do feel study of multicultural history include for students : Finally, discuss a specific way in which you feel you will be able to apply the concepts from this course to your current job or career plans.
What is the weight of DEF in the portfolio : Assume you wish to create a portfolio of the riskless asset and the DEF find such that portfolio has a beta of 0.7. What is the weight of DEF in the portfolio
What is the coupon rate for this MPT : If an investor decides to invest in this MPT, what precisely is the investor purchasing? What is the coupon rate for this MPT
Write a short literature review on a contemporary issue : Write a short literature review on a contemporary issue in IT Management and the solutions proposed to address it - Application of concepts and principles
Explain general concerns about the risks of overdiagnosis : Explain general concerns about the risks of overdiagnosis and misdiagnosis versus not diagnosing. Also explain how diagnosis is connected to services.
How much is the adjusted Cost of Goods Sold : Goods held on consignment were included in inventory count and recorded as a purchase, P 300,000. How much is the adjusted Cost of Goods Sold
Calculate the break-even value using marginal income ratio : Waltons Manufacturers commenced business on 02 January 2020, manufacturing plastic chairs. Calculate the break-even value using marginal income ratio

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entry to record the exchange in books

Prepare the journal entry to record the exchange in the books of Newton Co. assuming that exchange lacks commercial substance

  Julie has just retired her companys retirement program has

julie has just retired. her companys retirement program has 2 options for how her benefits can be recieved. option 1

  Clark international produces designer watches each watch

clark international produces designer watches. each watch requires materials worth 14.50 and three direct labor hours.

  Calculate the inventory turnover and days in inventory

General Motors uses the LIFO inventory method. Calculate the inventory turnover and days in inventory

  At times we can generate a regression equation to explain

at times we can generate a regression equation to explain outcomes. for example an employees salary can often be

  Terms of effectiveness and efficiency of operations

In terms of effectiveness and efficiency of operations, as well as of meeting the generic Information System control goals of validity, completeness, and accuracy, what are the arguments for and against each of the following? Does it matter if the..

  Determine the amount of cash outflow for expenses

Ray Company began the accounting period with a $36,000 credit balance in its Accounts Payable account. During the accounting period, Ray incurred expenses on account of $108,000. The ending Accounts Payable balance was $48,000.

  Are adjustments necessary in this situation

Make any adjustments as necessary. Opening Inventory is $6400.00 and the Ending Inventory $4,800.00. Are adjustments necessary in this situation

  Protect businesses with copyrights and patents

With today's business's, the products they have available to their customers, there are many laws that help the business protect their product and their self's. There are many important laws that will help protect businesses with copyrights and p..

  How do Record the journal entries for both Company Z and A

How do Record the journal entries for both Company Z and Company A if the sale was on a (1) without recourse basis and again on a (2) with recourse basis.

  What is net income for year

Ealing Corporation reported a balance in Retained Earnings of $2,796 million at the beginning of Year 7. What is net income for Year 7

  What is the material price variance

At end of year, Cartman actually sold 16,000 units (bags) and used 22,500 gallons of ingredients and paid $2.10 per gallon. What is the material price variance

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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