Business, 21.04.2020 16:31 kony345p

The following information is for a collateralized mortgage obligation (CMO). Tranche A of $50 million receives quarterly payments at 9 percent per year, tranche B of $100 million receives quarterly payments at 10 percent per year, and tranche C of $50 million receives quarterly payments at 11 percent per year. If at the end of the first quarter, the CMO trustee receives total cash flows of $8 million, how are they distributed among the three tranches? (0.2 points)5. What is the principal outstanding on Tranche A, Tranche B, and Tranche C after the end of year payment in the previous question? (0.2 points)

Answers: 3

Show answers

Answers

Tranche A interest $50m*9%*3/12 $1,125,000 Tranche B interest $100m*10%*3/12 $2,500,000 Tranche C interest $50m*11%*3/12 $1,375,000Principal balances:Tranche A $47 millionTranche B $100 millionTranche C $50 millionExplanation:The approach in debts securitization is that the most senior tranche,tranche A in this question receives any payment received in excess of periodic payment of interest.On that basis,the quarterly payments can be shared between the three tranches as follows:Total quarterly payment received $8000,000Tranche A interest $50m*9%*3/12 ($1,125,000) Tranche B interest $100m*10%*3/12 ($2,500,000) Tranche C interest $50m*11%*3/12 ($1,375,000) Balance left $3,000,000As earlier reiterated, the balance of $3 million would be used to redeem part of tranche A,hence in tranche A is $47 million($50m-$3m):Principal balances:Tranche A $47 millionTranche B $100 millionTranche C $50 million

Answer from: Quest

a dunce cap for you, you assed this 2 weeks ago

Answer from: Quest

answer; depth;

Another question on Business

Business, 22.06.2019 05:30

Excel allows you to take a lot of data and organize it in one document. what are some of the features you can use to clarify, emphasize, and differentiate your data?

Answers: 2

Answer

Business, 22.06.2019 07:30

What is the relationship between the national response framework and the national incident management system (nims)? a. the national response framework replaces the nims, which is now obsolete. b. the response protocols and structures described in the national response framework align with the nims, and all nims components support response. c. the nims relates to local, state, and territorial operations, whereas the nrf relates strictly to federal operations. d. the nims and the national response framework cover different aspects of incident managementâ€”the nims is focused on tactical planning, and the national response framework is focused on coordination.

Answers: 3

Answer

Business, 22.06.2019 07:30

Most states have licensing registration requirements for child care centers and family daycare homes. these usually include minimum standard for operation. which of the following would you most likely find required in a statement of state licensing standards for child care centers?

Answers: 2

Answer

Business, 22.06.2019 20:40

Helen tells her nephew, bernard, that she will pay him $100 if he will stop smoking for six months. helen was hopeful that if bernard stopped smoking for six months, he would stop altogether. bernard stops smoking for six months but then resumes his smoking. helen will not pay him. she says that the type of promise she made cannot constitute a binding contract and that, furthermore, it was at least implied that he would stop smoking for good. can bernard legally collect $100 from helen

Answers: 1

Answer

You know the right answer?

The following information is for a collateralized mortgage obligation (CMO). Tranche A of $50 millio...

Questions