What is the return on the IO and PO at prepayment rates of 25 percent and 30 percent?

Expert Solution

See below:

	IRR of IO	IRR of PO
Prepayment
0.00%	30.00%	5.38%
5.00%	25.32%	6.57%
10.00%	20.62%	7.90%
15.00%	15.91%	9.37%
20.00%	11.19%	10.94%
25.00%	6.45%	12.59%
30.00%	1.70%	14.30%

Raffay answered 2 years ago

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