Please show step by step how to solve and all formulas.  The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each.  All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via MPT security. Suppose that they issue 150,000 shares of MPT security and the market interest rate is 6%.   Questions   A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the MPT security?   B. What is the price of each share of the MPT if there are a constant prepayment rate of 1.5% every month and no default?   C. What is the price of each share of the MPT if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment?

Please show how to solve this step by step to answer questions A. B. C. and D.  The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each.  All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via IO/PO Strips. Suppose that they issue 150,000 shares of IO/PO Strips and the market interest rate is 6%. A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the IO/PO Strips? B. What is the price of each share of the IO/PO Strips if there are a constant prepayment rate of 1.5% every month and no default? C. What is the price of each share of the IO/PO Strips if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment? D. Please explain your findings.

A Financial Institution (FI) originates a pool of 500 30-year mortgages, each averaging $150,000 with an annual mortgage coupon rate of 8 percent. Assume that the entire mortgage portfolio is securitized to be sold as GNMA pass-throughs. The GNMA credit risk insurance fee is 6 basis points, and the FI's servicing fee is 19 basis points. Assume no prepayments. What are the expected monthly cash flows (fees) for the GNMA? $2,947.83 $4,527.72 $13,014.25 $3,123.42 $8,973.62

Using Excel Please show how to solve this step by step to answer questions A. B. C. and D.  The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each.  All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via IO/PO Strips. Suppose that they issue 150,000 shares of IO/PO Strips and the market interest rate is 6%. A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the IO/PO Strips? B. What is the price of each share of the IO/PO Strips if there are a constant prepayment rate of 1.5% every month and no default? C. What is the price of each share of the IO/PO Strips if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment? D. Please explain your findings.

Boomer Co. offers a financial security that pays $200 annually for 5 years and the market rate is 5%. Explain how to calculate using finance calculator (BA II) and what to enter to get results and include the ANSWER to each question please. a. How much is that security worth to you today? b. How much is the security worth if the market rate is 5% for the first three years, then decreases to 3% for the final two years of payments? C. How much is the security worth if the $200 payment grows by 4% every year?

Consider a primary mortgage market lender who has just now originated 1,000 30-year, monthly payment loans for $800,000 each at 5.25% interest with each borrower paying 1 point at origination. The lender wishes to sell the pool of mortgages as a mortgage pass through security (MPTS). Investors are demanding a 4.875% yield on the MPTS backed by the pool. A servicing firm is willing to service the loans in the pool for 0.5 % annually (paid monthly) and the pool is expected to prepay based on the 100% PSA prepayment model. What is the market value of the ppol?

The Green Mortgage Company has originated a pool containing 75 ten-year fixed interest rate mortgages with an average balance of $102,200 each. All mortgages in the pool carry a coupon of 12 percent. (For simplicity, assume that all mortgage payments are made annually at 12% interest.) Green would now like to sell the pool to FNMA. (A) Assuming a constant annual prepayment rate of 10 percent (for simplicity, assume that prepayments are based on the pool balance at the end of each year), what will be the price that Green should obtain on the date of issuance if market interest rates were (1) 11 percent? (2) 12 percent? (3) 9 percent? Market Interest Rate Price of the Pool 11% $7,951,446 12% $7,665,000 9% $8,580,288 (B) Assume that five years have passed since the date in (a). What will the pool factor be? If market interest rates are 12 percent, what price can Green obtain then? What is the Pool Factor? What is the Price of the pool after 5 years?

You organize an investment team to purchase a commercial property for $850,000. The bank demands a 20% down payment with the rest to be mortgaged at an annual interest rate of 6.5%. What amount is to be mortgaged? What will be the monthly payment if the length of the mortgage is 15 years? What will be the total amount of interest payed?

The Green Mortgage Company has originated a pool containing 75 ten-year fixed interest rate mortgages with an average balance of $102,400 each. All mortgages in the pool carry a coupon of 12 percent. ( For simplicity, assume that all mortgage payments are made annually at 12% interest.) Green would now like to sell the pool to FNMA. Required: a. Assuming a constant annual prepayment rate of 10 percent (for simplicity, assume that prepayments are based on the pool balance at the end of each year), what will be the price that Green should obtain on the date of issuance if market interest rates were (1) 11 percent? (2) 12 percent? (3) 9 percent? b. Assume that five years have passed since the date in (a). What will the pool factor be? If market interest rates are 12 percent, what price can Green obtain then? c. Instead of selling the pool of mortgages in (a), Green decides to securitize the mortgages by issuing 100 pass-through securities. The coupon rate will be 11.5 percent and the…

A Wall Street firm is trying to package nine mortgages for sale. The sizes of the mortgages (in thousands of dollars) are listed in the file P08_27.xlsx. To be sold, each package must consist of at least $1,000,000 in mortgages. What is the largest number of packages that can be created?