Same as question 5, consider a sequential pay cmo that is backed by 100 mortgages with average balance of $150,000 each. the mortgages have monthly payments with wam = 30years and wac = 6%. there is a servicing fee of 0.4% and prepayment is according to 150% psa. tranche a holds $6,000,000 of the mortgage pool principal at origination, tranche b holds $3,000,000 and tranche z holds $5,000,000. the rest of the pool principal is held by the spv as a residual. the spv has set apass-through rate (coupon rate net of the servicer/guarantee fee) of 4% for tranche a, 4.5% for tranche b and 5% for tranche z. what is the cash flow to the residual tranche in month 1?

Specialization—the division of labor—enhances productivity and efficiency by a) allowing workers to take advantage of existing differences in their abilities and skills. b) avoiding the time loss involved in shifting from one production task to another. c) allowing workers to develop skills by working on one, or a limited number, of tasks. d)all of the means identified in the other answers.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?

Alarge tank is filled to capacity with 500 gallons of pure water. brine containing 2 pounds of salt per gallon is pumped into the tank at a rate of 5 gal/min. the well-mixed solution is pumped out at the same rate. find the number a(t) of pounds of salt in the tank at time t.