4. (20 pts) Consider the mortgage pool data below for a Mortgage Backed Security (MBS)....
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4. (20 pts) Consider the mortgage pool data below for a Mortgage Backed Security (MBS). Please answer the questions below about the first scheduled payment to the investors of this MBS. SHOW YOUR WORK Dollar amounts may be rounded to the nearest dollar. (a) What is the CPR for this payment? (b) What is the SMM for this payment? (c) For this payment, what is the amount of the total scheduled mortgage payment, the gross interest paid with that payment, and the scheduled principal repaid with that payment? (You can use your BA II Plus to calculate this data. Show what you would enter into your calculator to obtain this data.) (d) What is the net interest payment available to the MBS investors after servicing fees have been paid? (e) What is the forecasted prepayment amount based on the SMM calculated in (b) above? (f) What will be the total principal repayment to the MBS investors in the first payment? (g) What will be the total payment made to the MBS investors
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