Please show step by step how to solve and all formulas.  The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each.  All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via MPT security. Suppose that they issue 150,000 shares of MPT security and the market interest rate is 6%.   Questions   A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the MPT security?   B. What is the price of each share of the MPT if there are a constant prepayment rate of 1.5% every month and no default?   C. What is the price of each share of the MPT if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment?

Please show how to solve this using excel and please show all formulas to answer questions A. B. and C.  The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each.  All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via MPT security. Suppose that they issue 150,000 shares of MPT security and the market interest rate is 6%. A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the MPT security? B. What is the price of each share of the MPT if there are a constant prepayment rate of 1.5% every month and no default? C. What is the price of each share of the MPT if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment?

Using Excel Please show how to solve this step by step to answer questions A. B. C. and D.  The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each.  All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via IO/PO Strips. Suppose that they issue 150,000 shares of IO/PO Strips and the market interest rate is 6%. A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the IO/PO Strips? B. What is the price of each share of the IO/PO Strips if there are a constant prepayment rate of 1.5% every month and no default? C. What is the price of each share of the IO/PO Strips if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment? D. Please explain your findings.

Consider this case: Gizmonic Institute Corp. needs to take out a one-year bank loan of $400,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 9% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 6% add-on interest to be repaid in 12 equal monthly installments.   A. Based on a 360-day year, what will be the monthly payment for each loan for November? (Hint: Remember that November has 30 days.)   Value Simple interest monthly payment      Add-on interest monthly payment        Choose the answer that best evaluates the following statement:   B. Mall Toys Co1 always prefers simple interest loans over add-on interest loans because even if the interest rate is higher on the simple interest loan, its monthly payment is lower. (Options Below)   The company needs to be sensitive to interest rate differences between loan types and take them…

Please teach me how to solve this, thanks! ABC would like to hire two loan collectors to speed up its collection process. Each of the loan collectors will be given total annual benefits of P150,000 per year. The entity earns P30,000,000 in sales, 10% of which are cash. The entity has a 365-day year and a minimum required rate of return of 10%. The current average age of receivables is 70 days but with the loan collectors, it is forecasted to decrease by 30 days. How much is the net benefit or (cost) of this option?

Meadow Company wants to invest its net profits of $69,000 for 6 years in either a credit union or a local bank. The credit union provides interest of 4.75% compounded monthly, while the local bank provides interest of 5.25% compounded semi-annually. a. What would be the maturity value of the investment under the credit union option? Round to the nearest cent b. What would be the maturity value of the investment under the local bank option? Round to the nearest cent c. Which of the two options will yield the highest return? a. Credit Union b. Local Bank

Cloud Venture has a line of credit with a local bank of $75,000. The loan agreement calls for interest of 6 percent with a compensating balance requirement of 3 percent that is based on the total amount borrowed. What is the effective interest rate if the firm needs $58,000 for one year to finance a fixed asset purchase?

Your company has determined it can and is willing to pay a monthly mortgage payment of $12,000 (per month) on a loan to buy its headquarters building.  Assume that the lender is willing to lend 100% of the purchase price, so your company does need to put down any equity for the purchase.   And, you have called the lender and they’ve told you they typically lend over 20 years at 4.75% per year interest.  What is the maximum amount your company can afford to pay the seller for the building?

Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100,000 each. The mortgages have monthly payments with WAM = 15 years and WAC = 4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are two tranches in this CMO: tranch A issued for $3,000,000 and tranche B issued for $3,000,000. How much cash flow do investors in tranche A receive in the first month?

Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing-that is, a loan from the current owners of the agency. The loan will be for 2,100,000 financed at an APR of 8 percent compounded monthly. This loan will be paid off over 7 years with end o month payments, along with a 600,000 balloon payment at the end of year 7. That is, the 2.1 million loan will be paid off with monthly payments, and there will also be a final payment of 600,000 at the end of the final month. How much will the monthly payments be?