if the picture is unclear, it says; consider a sequential pay CMO that is...
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if the picture is unclear, it says; consider a sequential pay CMO that is backed by 60 mortgages with average balance lf $100,000 each. the mortgages have monthly payments with WAM=15 years and WAC = 4%. There is a servicing dee of 0.6% and prepayment is according to 100% PSA. There are three tranches in this CMO: tranch A issued for 2,000,000, tranche B issues for $2,000,000, and a Z-bond issued for $2,000,000. How much cash flow do investors in tranche A receive in the first month?
consider a sequential pay CMO that is backed by 60 mortgages with average balance lf $100,000 each. the mortgages have monthly payments with WAM=15 years and WAC = 4%. There is a servicing dee of 0.6% and prepayment is according to 100% PSA. There are three tranches in this CMO: tranch A issued for 2,000,000, tranche B issues for $2,000,000, and a Z-bond issued for $2,000,000. How much cash flow do investors in tranche A receive in the first month?
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