FINE 445 Study Guide - Final Guide: Bachelor Of Commerce, Accrued Interest
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With rise in market interest rate, psa should fall, here by 50 to 100 (from 150): With fall in market interest rate, psa should rise, here by 40 to 210 (from 170): Practice mpt & cmo: (10 points) mortgage pass through or mortgage backed security. Suppose an investor buys one piece of the mpt issue at the initial market price (equal to face value). Just show the cash flows to one piece of mpt under the initial and then under the changed market scenario, need not show further details of the cash flows]. With rise in market interest rate, psa should fall, here by 60 to 70 (from 130): Mcgill university, desautels faculty of management fine 445: bcom real estate finance. Practice mpt & cmo: (10 points) cmo [sequential pay] Tranche a will receive all scheduled principal payments and prepayments plus accrued interest on. Tranche z until tranche a is fully paid off.
