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Business, 01.07.2020 14:53 livy151515

Consider a $400 million pass-through MBS that has just been created (so the 'seasoning' of the pass-through is equal to 0). The underlying pool of mortgages each has a maturity of 20 years and an annual mortgage coupon rate of 6%. The pass-through rate of the mortgage pool is 5%. Assuming a prepayment multiplier of 100 PSA what is the total amount of interest paid to the pass-through investors? Submission Guideline: Give your answer in millions rounded to two decimal places.

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Consider a $400 million pass-through MBS that has just been created (so the 'seasoning' of the pass-...
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