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QUESTION 3 Consider an MPT with WAC-5% with par value of $5,000,000. There is a...

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QUESTION 3 Consider an MPT with WAC-5% with par value of $5,000,000. There is a servicing fee of 0.4% a year for this security. Mark all statements that are true: If market rate is 7%, the MPT will sell above par value If market rate is 5%, the MPT will sell at $5,000,000 If market rate is 4.6%, the MPT will sell at $5,000,000 If market rate is 7%, higher projected prepayment rates will result in higher valuation for the MPT If market rate is 4.6%, higher projected prepayment rates will result in higher valuation for the MPT QUESTION 3 Consider an MPT with WAC-5% with par value of $5,000,000. There is a servicing fee of 0.4% a year for this security. Mark all statements that are true: If market rate is 7%, the MPT will sell above par value If market rate is 5%, the MPT will sell at $5,000,000 If market rate is 4.6%, the MPT will sell at $5,000,000 If market rate is 7%, higher projected prepayment rates will result in higher valuation for the MPT If market rate is 4.6%, higher projected prepayment rates will result in higher valuation for the MPT

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