Consider a mortgage of $1,000,000. It has a 3.5% coupon paid monthly, maturity of 30 years,...

Consider a mortgage of $1,000,000. It has a 3.5% coupon paid monthly, maturity of 30 years, and a current price of 103.4375. What is the monthly yield of this mortgage? What is the bond equivalent yield? Show the formula used in calculating the yield.

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jeff jeffy answered 2 years ago

Consider a mortgage pool with principal of $20 million. The maturity is 30 years a monthly...

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Consider the following mortgage: Loan amount $376,038 30 year maturity with monthly payments Fully amortizing Fixed...

Consider the following mortgage: Loan amount $376,038 30 year maturity with monthly payments Fully amortizing Fixed interest rate at 5% Suppose the investors use 50% PSA model to predict prepayments. What would be their prediction for the dollar amount of prepayments in the first month? Round your answer to the nearest cent (e.g. if you answer is $1,400.677777, write 1400.68).

A U.S. government bond with 5 years to maturity pays a coupon of 3.5%. The yield...

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Consider a mortgage of $1,000,000. It has a 3.5% coupon paid monthly, maturity of 30 years,...

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