Business, 07.05.2021 21:10 babiibri4771

Consider a CMO with tranches A, B and a residual. The CMO is backed by a pool of fully amortizing fixed rate mortgages with monthly payments. Assume that there is a servicing fee and some anticipated prepayment. What is the correct formula for computing cash flows to the residual tranche? A. (Scheduled Payment) + (Prepayment) - (Servicing Fee) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)
B. (Scheduled Payment) + (Prepayment) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)
C. (Scheduled Payment) + (Prepayment) + (Servicing Fee) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)
D. (Scheduled Payment) + (Servicing Fee) - (Cash Flow to Tranche A) - (Cash Flow to Tranche B)

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 10:10

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

Answers: 1

Answer

Business, 22.06.2019 14:30

Amethod of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the a. last-in, first-out method. b. first-in, first-out method. c. specific identification method. d. average cost method.

Answers: 3

Answer

Business, 22.06.2019 19:30

Which of the following occupations relate to a skill category of words and literacy

Answers: 1

Answer

Business, 22.06.2019 20:10

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.

Answers: 2

Answer

You know the right answer?

Consider a CMO with tranches A, B and a residual. The CMO is backed by a pool of fully amortizing fi...

Questions