What profits does BOA make immediately? (the answer will be a few million dollars, an 8-digit number)
BOA originates 100 Fully Amortizing Fixed Rate Mortgages, each has a $1,000 balance, 5% interest rate (no fees), 25-year term, and annual payments. BOA immediately issues IO and PO strips backed by the pool of these mortgages and sells them to investors who discount payoffs at 4%. 1. What profits does BOA make immediately? (the answer will be a few million dollars, an 8-digit number) 2. What is the value of all PO strips? 3. What would be the value of all PO strips if the expected prepayment rate was 15% per year? 4. What would be the value of all PO strips if instead the expected default rate was 10% per year? Assume that in case of default, BOA recovers 85% of balance (i.e. default is prepayment but you receive only 80% of the `prepaid’ balance).
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What profits does BOA make immediately? (the answer will be a few million dollars, an 8-digit number)
$200 mils of MBBs will be issued against a $300 mils pool of mortgages, in denominations...
$200 mils of MBBs will be issued against a $300 mils pool of mortgages, in denominations of $10,000 per share for a period of 10 years. The bonds will carry a coupon @8%, payable annually. The bonds are rated of Aaa or AAA. The market rate of return demanded by investors (who purchase MBBs from underwriters) is 10% per annual. Which of the following statement is TRUE? The market price of the MBB on the date of issuance is $9,358...
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Real Estate Finance
answer all please
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17-20 Answer Question 17 (1 point In order to simulate the demand for year 2020, you generate a random number of 0.445. What would be the corresponding Number of Sales? of Sales Frequency(Days) Y...
17-20
Answer Question 17 (1 point In order to simulate the demand for year 2020, you generate a random number of 0.445. What would be the corresponding Number of Sales? of Sales Frequency(Days) Your Answer Question 17 options: Answer Question 18 (1 point) A restaurant sells pizza at a rate of $15/slice. Expenses for the restaurant include raw material for pizza at $9 per slice, $186 as monthly rental and $56.00 monthly as insurance. How many slices should the restaurant...
Not sure what other info you need? This is the whole question. There is no other...
Not sure what other info you need? This is the whole question.
There is no other info to give you.
Lou Lewis, the president of Lewisville Company, has asked you to give him an analysis of the best use of a warehouse the company owns. a. Lewisville Company is currently leasing the warehouse to another company for $6,800 per month on a year-to-year basis. (Hint: Use the PV function in Excel to calculate, on an after-tax basis, the PV of...
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Real Estate Finance
answer all please
. John Corbitt takes a fully amortizing mortgage for $80,000 at 10 percent interest for 30 years, monthly payments. What will be his monthly payment? 2. Dave Burns wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Dave can afford a monthly payment of $600, principal and interest. If the current interest rate on 30-yearm fixed-rate mortgage is 9.50 percent, what is the maximum...
3. What discount rate would you use to discount the Brazilian Real cash flows from the project? Does this adequately capture the risk of investing in Brazil? 4. What is the present value of the cheap financing being provided by the Japanese equipment manufacturer? How, if at all does this change the valuation of the project? 3. Note the value of the cheap financing should be added to the Br R value that you calculated above. For this calculation you...
17-20
Answer Question 17 (1 point In order to simulate the demand for year 2020, you generate a random number of 0.445. What would be the corresponding Number of Sales? of Sales Frequency(Days) Your Answer Question 17 options: Answer Question 18 (1 point) A restaurant sells pizza at a rate of $15/slice. Expenses for the restaurant include raw material for pizza at $9 per slice, $186 as monthly rental and $56.00 monthly as insurance. How many slices should the restaurant...
Not sure what other info you need? This is the whole question.
There is no other info to give you.
Lou Lewis, the president of Lewisville Company, has asked you to give him an analysis of the best use of a warehouse the company owns. a. Lewisville Company is currently leasing the warehouse to another company for $6,800 per month on a year-to-year basis. (Hint: Use the PV function in Excel to calculate, on an after-tax basis, the PV of...
1) Discuss the company's top risks? 2) Discuss whether the company treats risk reactively or proactively? 3) Do you observe a lack of understanding of potential exposures? 4) Does the company focus on internal risks or external risks? 5) Do you think the company is well prepared to respond to potential risks? Orange County he t die Following the debocie Orange County o dmorych of control procedures and financial gove nonce and d e setof o n policies December 1994...
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