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Question
Problems
| Tranche | Amount | Interest Rate | Expected Principal Repayment Period |
| A | $ 50 m | 4% | 2010 to 2016 |
| A1 | $ 20 m | 5% | 2016 |
| B | $ 30 m | 6% | 2016 |
| R | $100 | NA | NA |
Collateral Pool
Ten loans, each with an original principal balance $10 m. All loans are 6.4% 7 year commercial mortgages and were originated on January 1, 2010 with 20 year amortization schedules.
Note: All questions refer to the schedule above:
How much excess interest is generated by the securitization during the first year? Does this amount rise or fall during the expected seven year life?
Answer
This answer is hidden. It contains 349 characters.
Related questions
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