Question

need answer for question 6.
QUESTION 3 Number of Loans Principal Rate Maturity 50 100,000 4% 360 100 250,000 4.25% 180 50 300,000 5% 360 Consider a MPT created from the above pool of loans. If these loans are all fully amortizing FRMs, what is the WAC? Assume the loans are not seasoned before they are securitized. Do not round your answer until the end; then round your answer to 2 decimal places. (For example if the WAC was seven and a half percent, enter 7.50) 4.47 QUESTION 4 (Using chart from previous question) If these 200 loans are pooled to create a MPT, what is the starting pool balance in dollars? Assume the loans are not seasoned before securitization. 45000000

Answer 1

Answer page:01 L6Q) - using same pool from problem 3 calculating WAM & the pool at issuance we hable to assume that the loans are not seasoned at the time of securitization. number of loans principal Nalue of loan | Maturity 50 100,000 5,000,000 360 250,000 25,000,000 180 300,000 15,000,000 360 Total value 45,000,000 WAM. Sum of (valuie x maturity) / Total value WAM , ( 55000000 x 360 +25,000,000 X 180 +15,000,000x 360) / 45000000 WAM = 260 days nearly [a months