Fill the details/instructions form and checkout for your essay - pro writers; top college graduates only in less than 5 mins, NO AI—Plagiarism-free!.
Posted: January 19th, 2024
Mortgage-backed securities: 10 & PO strips See an example in slides and an Excel file on Blackboard before doing this question! BOA originates 1000 Fully Amortizing Fixed Rate Mortgages, each has a $100,000 balance, 6.5% interest rate (no fees), 30 year term, and annual payments. BOA immediately issues 10 and PO strips backed by the pool of these mortgages and sells them to investors who discount payoffs at 5.5%.
7. What profits does BOA make immediately? (the answer will be a few million dollars, an 8-digit number)
8. What is the value of all PO strips? Hint: do 08-10 in Excel but be ready to do a version with shorter term mortgages in the Final. 9. What would be the value of all PO strips if the expected prepayment rate was 10% per year?
10. What would be the value of all PO strips if instead the expected default rate was 10% per year? Assume that in case of default, BOA recovers 85% at balance. Mortgage-backed securities: floaters and inverse floaters See an example in slides!
11 BOA issues $200m in CMO. 75% of the issue is floater tranche with index – LIBOR (currently and margin – 1%. The remaining 25% is inverse floater tranche that is designed to keep the total cost of financing constant. The next year LIBOR falls to 4%. What would be the interest paid to the inverse floater tranche investors? Enter your answer in percent, but without percent sign. Get Finance homework help today
Every student wants the best grades and that’s our Focus
Our team consists of outstanding writers who have specialized knowledge in specific subject areas and professionals experienced in academic research writing. They hold at least a graduate degree—230 with Masters and MSN, experts carefully selected and trained to ensure the best quality of our work. .
We are committed to hiring the most skilled writers who can deliver high-quality work at a reasonable price for college students. Thus, we offer the best value for money without sacrificing the standard of our essay writing services; the quality of the paper's content. #Remember to activate the DISCOUNT Code on the order form COUPONS' section before making payment for your essay.
The service guarantees that our final work is 100% original, rearched and human written. We are committed to delivering plagiarism-free and AI-free work to each university/college student's 'write my paper' request. To uphold this promise, we check every draft for any possible instances of duplication, wrong citation, grammar errors and artificiality before we send it to you. Thus, you can always rely on us to write genuine and high-standard content for your essay assignments.
When you decide to place an order with Homework Ace Tutors, here is what happens: