1 / 3

Calculate how much money each Tranche will receive/TUTORIALOUTLET DOT COM

You have been assigned to calculate how much money each Tranche will receive. There are 10 mortgages in a pool. Each mortgage has a value of $10,000,000 for a total pool of $100,000,000. Each mortgage is an interest only mortgage paying a 6% interest rate.

albert0002
Download Presentation

Calculate how much money each Tranche will receive/TUTORIALOUTLET DOT COM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Calculate how much money each Tranche will receive/TUTORIALOUTLET DOT COM

  2. Calculate how much money each Tranche will receive/TUTORIALOUTLET DOT COM Calculate how much money each Tranche will receive FOR MORE CLASSES VISIT www.tutorialoutlet.com You have been assigned to calculate how much money each Tranche will receive.  There are 10 mortgages in a pool.  Each mortgage has a value of $10,000,000 for a total pool of $100,000,000.  Each mortgage is an interest only mortgage paying a 6% interest rate.  Half of the mortgages will mature this year and half of them will mature next year.  An A Tranche has been established with a par of $75,000,000 and a coupon of 4%.  A B Tranche has been established with a par of $25,000,000 and a coupon of 6%.  Finally, an Interest Only Tranche has also been established.  3 mortgages default after the first year.  Investors will only recover half of the value of each of these 3 mortgages.

  3. Calculate how much money each Tranche will receive/TUTORIALOUTLET DOT COM THANK YOU

More Related