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Assume that you are considering purchasing a pass-through security, with the following characteristics. PSA Principal Balance WAC Pass-Through Coupon Regular Payment Original term # of months remaining 354 25,000,000 5.400% 5.150% 141,998.88 360 350 The price of the bond is $24,500,000. In your first month of ownership, what is the prepayment? Round your answer to the nearest dollar and DO NOT ROUND YOUR INTERMEDIATE CALCULATIONS.

Assume that you are considering purchasing a pass-through security, with the following characteristics. PSA Principal Balance WAC Pass-Through Coupon Regular Payment Original term # of months remaining 354 25,000,000 5.400% 5.150% 141,998.88 360 350 The price of the bond is $24,500,000. In your first month of ownership, what is the prepayment? Round your answer to the nearest dollar and DO NOT ROUND YOUR INTERMEDIATE CALCULATIONS.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume that you are considering purchasing a pass-through security, with the following characteristics. PSA 354 Principal Balance 25,000,000 WAC 5.400% Pass-Through 5.150% Coupon Regular Payment 141,998.88 Original term 360 # of months 350 remaining The price of the bond is $24,500,000. In your first month of ownership, what is the prepayment? Round your answer to the nearest dollar and DO NOT ROUND YOUR INTERMEDIATE CALCULATIONS.
Transcribed Image Text:Assume that you are considering purchasing a pass-through security, with the following characteristics. PSA 354 Principal Balance 25,000,000 WAC 5.400% Pass-Through 5.150% Coupon Regular Payment 141,998.88 Original term 360 # of months 350 remaining The price of the bond is $24,500,000. In your first month of ownership, what is the prepayment? Round your answer to the nearest dollar and DO NOT ROUND YOUR INTERMEDIATE CALCULATIONS.
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