Given that a seasoned 360-month agency mortgage pass-through security has currently a weighted average maturity (WAM) of 357 months. It has $400M outstanding balance, a 7.5% pass-through coupon rate, and 8.125% weighted average coupon (WAC). Assuming 125% PSA and a first month mortgage payment of $2,975,868, what is the expected prepayment for the first month?   Group of answer choices   $267,535   $267,470   $334,473   $334,647   None of the a

Q: show steps to calculation with screenshots of excel !! Consider a $ 5,000,000, 8.5% APR, 30-year…

A: Interest Rate 8.50%Loan Amount $      5,00,000.00Mortgage, Year30Coupounding Period12

Q: D3) Consider a mortgage loan of $250,000, given today, at the fixed mortgage rate of 6.076% per…

A: Mortgage loan Amount, PV $ 2,50,000.00Fixed Mortgage rate, Rate6.076%Compounded period2Tenure…

Q: Consider a 7.5%, $145,000, 25-year mortgage loan with 1/2% origination fee, 3/4 of a point, $550…

A: To calculate the real APR with an early payoff after 10 years, we first need to calculate the total…

Q: etermine the outstanding principal of the given mortgage. HINT [See Example 7.] (Assume monthly…

A: Loan amount,PV is $100,000The time period is 36 yearsThe interest rate is 4.2% compounded…

Q: You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each…

A: Nominal Interest Rate: It represents the rate of interest that does not take into consideration the…

Q: Assuming the mortgage is a 20-year adjustable rate mortgage, use the given information to find the…

A: Annuity A series of equal payments at equal interval over a specified period of time is considered…

Q: You took out a 25-year constant amortizing mortgage of $373,000 with an interest rate of 4.25%? What…

A: Monthly payment amount is calculated using following equation Monthly payment = rm×A1-11+rmn×m…

Q: A price level adjusted mortgage (PLAM) is made with the following terms:   Amount = $96,600…

A: Annual effective rate Annual effective rate is calculated as shown below. Annual effective…

Q: What would the monthly payments be on a $65,000 loan if the mortgage were set up as:   A 15-year,…

A: A mortgage payment typically refers to the regular payment that a borrower makes to a lender to…

Q: 57:59 Sawyer Industries Inc. (SII), developed standard costs for direct material and direct labour.…

A: Note:- 1st question is related to finance. Please post the same in finance. Only 2nd question is…

Q: In addition to the UFMIP (up-front mortgage insurance premium), the owner-occupant borrower who…

A: Federal Home administration (FHA) imposes an additional insurance clause to mortgage loans in Loan…

Q: an mortgage is $500000. it is to be paid off in exactly 25 years with end of month payment of $2400.…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Without building an am schedule, what is the balloon for a $5 million 124-month mortgage at 4.75%…

A: A balloon payment is a remaining balance owed on a loan that is set up with a series of modest…

Q: Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security. The…

A: Given,  The value of each mortgage is 100,000 Number of Mortgages = 50 The value of 50 mortgage = 50…

Q: A price level adjusted mortgage (PLAM) is made with the following terms:   Amount = $96,000…

A: b. To calculate the loan balance at the end of the fifth year, we need to calculate the outstanding…

Q: an for the first 5 years (i.e., first 60 monthly payments). Subseque age will become a standard…

A: For first 5 years  Loan payment=750000 interest rate =3.6% monthly interest =3.6/12=0.3% monthly…

Q: Assume that a lender offers a 30-year, $154,000 adjustable rate mortgage (ARM) with the following…

A: A variable-rate mortgage is one with an interest rate that changes over time; as a result, your…

Q: ate Intro, IVM, A fully amortizing mortgage is made for $122,000 at 6.5 percent interest. Required:…

A: Mortgage amount = $122,000Interest rate = 6.5%Monthly payment = $1,110

Q: You have just won your state's big lottery, the Mega Power Pick-6! The jackpot is $123,000,000. You…

A: Present value is value today which will be equivalent to the future cash flow money to be received…

Q: What is the monthly mortgage constant on a 30-year mortgage loan of $90,000 requiring payments of…

A: Here, we'll find loan, IRR for the year.

Q: You took out a fixed interest rate mortgage loan with an initial loan balance of $260,000, an annual…

A: Mortgage loans are paid by equal monthly payments that carry payment for interest and payment for…

Q: Use Excel to create an annual summary (5-years) amortization schedule for a fully-amortizing, fixed…

A: The debt amortization schedule refers to the bond's structure in a tabular representation, showing…

Q: A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The…

A: Step 1: Final answer: a. - Maturity period for bi-weekly payments: 20 years * 12 months/year * 2…

Q: A borrower takes out a 24-year adjustable rate mortgage loan for $253114 with monthly payments. The…

A: Using the annuity payment formula, the calculated new monthly payment for the third year, with a 5%…

Q: Which statement is wrong about the PSA model for prepayment?The prepayment speed of a specific…

A: For estimating the rate of prepayments for mortgage-backed securities (MBS), the Public Securities…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: 2. You take out a 30-year mortgage for $275,000 at an interest rate of 5.1 percent. How much will…

A: Loan Amortization is a method of determining the principal payments, interest payments, and balance…

Q: Suppose Bank A offers a $201,000, 20-year, 2.1% fixed rate mortgage with closing costs of $1900 plus…

A: We have to find the closing cost in the loan transaction.

Q: Alternatively, you can obtain from your bank a 30-year interest-only (IO) mortgage with an…

A: First 5 years interest only on mortgage  interest rate 3.6%monthly compounding  monthly interest…

Q: 100,000, 30-year, 4.3% mortgage after 10 years

A: Outstanding principal:The term "outstanding principal" refers to the remaining amount of money owed…

Q: Assume a variable rate mortgage of 500,000 with j12= 4%, amortized over 25 years with monthly…

A: Refinancing cost refers to the expenses associated with refinancing a loan. When you refinance, you…

Q: A commercial property has expected first year NOI of $48,000. If the required debt coverage ratio is…

A: Mortgage loans are given on the basis of ability to pay back the loans and are based on debt…

Q: Required: 1. Compute the payments and loan balances for the ARM for the five-year period. b. Compute…

A: Adjustable Rate Mortgage(ARM):It is a home loan with a variable interest rate that changes over…

Q: An adjustable rate mortgage loan with a teaser rate of 1.5% for the first loan year, an index of the…

A: To find the maximum interest rate for the first half of the third loan year, we need to consider the…

Q: A lender has outlined key terms for a 4-year annuity balloon mortgage at a fixed interest rate…

A: Financial analysis is the process of evaluating the financial health and performance of a company or…

Q: Consider a 30-year, fixed-rate mortgage for $120,000 at a nominal rate of 6% with monthly payments.…

A: Loan amount(PV)=$120,000 Duration (n)=30*12=360 periods Rate per period(i)=0.0612=0.005 Monthly…

Q: Consider a standard mortgage (360 months) with monthly payments and a nominal rate of 6.80%. What…

A: Given information: Assume present value is 100 Nominal interest rate is 6.80% Number of periods is…

Q: Assume that a lender offers a 30-year, $148,000 adjustable rate mortgage (ARM) with the following…

A: Here,Initial Interest Rate7.50%Rate for Year 27%Rate for Year 38.50%Rate for Year 49.50%Rate for…

Q: A floating rate mortgage loan is made for $185,000 for a 30-year period at an initial rate of 12…

A: The concept of the time value of money acknowledges that the value of money today differs from its…

Q: 2. Using tab 2 in the template, create the amortization spreadsheet and answer the following…

A: Here is the detailed solution: 1. Monthly Payment Calculation:  Using the PMT function in Excel:…

Q: (Type A) If a fully amortizing 30-year fixed-rate mortgage was originally taken at $300,000 with 6…

A: Here, Loan Amount is $300,000 Remaining Loan Amount is $100,000 Interest Rate is 6% Time Period is…

Q: Consider a $100,000, 30-year, 6.2% mortgage with monthly payments. What portion of the payments…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: setting the appropriate values for a $100,000, 30-year mortgage at 6% interest and using Excel's…

A: For calculation of principal part and interest part, we need to calculate the monthly instalment for…

Q: Assume that you take out a 30-year mortgage (360 months) with a face value of $425,000 and a stated…

A: The mortgage refers to the agreement of amount provided by a lender to the borrower as a loan for a…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.