HOMEWORK > HW5_Solutions (1).pdf Baruch College, CUNY REES 3400

Baruch College, CUNY REES 3400 Homework 5 Question 1 A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 10% interest rate. What is the present value of the PO class if the discount/market rate is 11%? Excel is recommended for this problem. Answer Use excel to generate your table of cash flows. Remember: you are ...[Show More]

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