Please use the following additional information for Question…
Please use the following additional information for Questions 38-41: A financial institution originates a pool of 500 30-year mortgages, each averaging $150,000 with an annual mortgage coupon rate of 8 percent. Assume that the entire mortgage portfolio is securitized to be sold as GNMA pass-throughs. The GNMA credit risk insurance fee is 6 basis points and that the FI’s servicing fee is 19 basis points. Question: What is the total amount of monthly mortgage payments from mortgage borrowers to the pool?
Read DetailsYou have $10,000 to invest and you are considering investing…
You have $10,000 to invest and you are considering investing in a mutual fund. The fund charges a front-end load of 5 % and an annual expense fee of 1 % of the average asset value over the year. You believe the fund’s gross rate of return will be 10% per year. If you make the investment, what is your annual rate of return net of expenses during the first year?
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